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Mortgage Advice

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  • 16-03-2009 10:37am
    #1
    franco25
    Registered Users Posts: 106 ✭✭


    Hello

    I was wondering if someone could give me some advice in our pursuit of getting a mortgage.

    We are currently both 27 and looking to buy this year.
    Combined Salary is around 80K (40K each roughly)
    Combined Savings is roughly 45K and counting (25K each roughly in the next couple of months to make it to 50K)
    Job Security - 1 of us guaranteed as public sector, the other guaranteed at least for next 3years (this is worst case senario)
    Car Loans - not much, working on paying both off by year end.
    Future plans - marriage down the line and kids at some stage.

    The only stumbling block here is that one of us currently owns an apartment that is rented out (140K is left on the mortgage)(rent covers the mortgage automatically ever month)Due to the location of the apartment and our jobs it is not ideal to live in this apartment.

    We are currently looking at houses that we would like to throw in low offers of 200K at some stage this year, thus needing to borrow 160K.

    I am just checking to see with other posters how much of a stumbling block would they think that apartment currently owned by one of us is?


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    #2
    MarkR
    Moderators, Regional Midwest Moderators Posts: 11,101 Mod ✭✭✭✭MarkR


    Not me, but a friend of the wife was in a similar situation with his ex-wife and himself having a mortgage. New wife and him couldn't get a mortgage together until the first mortgage was paid off. I believe he had to get an investor mortgage (don't know what that is tbh).

    Speak to a mortgage advisor, either in a bank or some brokerage place. I'm sure they'll be able to set you right.


  • Options
    #3
    franco25
    Registered Users Posts: 106 ✭✭franco25


    Thanks Mark

    I know there will be a lot of young people in the same predicament with one already owning and the other a FTB.

    Is there a way around this, on my own i have 25K and looking to buy a 200K home. We had said as a suggestion that would it be posible to put her 25K in aswell and make it 50K deposit for 200K house and somehow sign a contract. As mention before marriage would not be far off and she would have half her name on the house anyway then.

    If i had to go it alone, would it not be the case that i would pay the mortgage and she would pay the bills?

    How does this work for a renter?

    Is there an easy way around this?

    As said we are not trying to get out of paying stamp duty, it is just mortgage approval might be a little more unlikely.

    Thanks


  • Options
    #4
    bop1977
    Registered Users Posts: 1,062 ✭✭✭bop1977


    franco, i was in a simalar situation. i showed the bank that the rent covered the morgage in full and did not hold that against me when i went to get a second house.

    as for stamp duty i avoided that by buying a new home and living there.

    HTH.


  • Options
    #5
    CaptainSubprime
    Closed Accounts Posts: 6 ✭CaptainSubprime


    bop1977 wrote: »
    franco, i was in a simalar situation. i showed the bank that the rent covered the morgage in full and did not hold that against me when i went to get a second house.

    as for stamp duty i avoided that by buying a new home and living there.

    HTH.

    Bop - I'm guessing that you bought that second house before the credit squeeze in the banks. Would this be an option in the present climate?

    Say for instance, someone has a property, and can rent it out to meet 100% of mortgage, and is more or less guaranteed steady rent...given the location of the property, even in a declining rental market. I'm not sure the banks would buy into that sort of collateral...at the moment anyway.


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    #6
    TheCityManager
    Registered Users Posts: 186 ✭✭TheCityManager


    franco25 wrote: »
    Hello

    I was wondering if someone could give me some advice in our pursuit of getting a mortgage.

    We are currently both 27 and looking to buy this year.
    Combined Salary is around 80K (40K each roughly)
    Combined Savings is roughly 45K and counting (25K each roughly in the next couple of months to make it to 50K)
    Job Security - 1 of us guaranteed as public sector, the other guaranteed at least for next 3years (this is worst case senario)
    Car Loans - not much, working on paying both off by year end.
    Future plans - marriage down the line and kids at some stage.

    The only stumbling block here is that one of us currently owns an apartment that is rented out (140K is left on the mortgage)(rent covers the mortgage automatically ever month)Due to the location of the apartment and our jobs it is not ideal to live in this apartment.

    We are currently looking at houses that we would like to throw in low offers of 200K at some stage this year, thus needing to borrow 160K.

    I am just checking to see with other posters how much of a stumbling block would they think that apartment currently owned by one of us is?

    Would you guys not simply rent for a couple of years whilst prices drop even further?
    Think longterm.....


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