Buying a second home

billyhead

Hi,

I have 15 years left on an Affordable homes mortgage with the council and I have 40000 saved in the bank. My Remaining mortgage with the council is just over 100,000 euro. I was thinking of investing in another house for about 250,000 to 260,000 and was wondering would an alternative fininancial institution grant me another mortage based on my current circumstances with the council. The house I was considering investing in aswell would be rented out. I have no other loans apart from teh council mortgage and have always kept up my payments. Also I save away 400 euro a forthnight. Any advice appreciated

Mary Hairy

Most banks don't want to know about investment mortgages. Thos that do will require a 50% deposit.

Da GOAT

dont do it.

Better off putting 40k or part of it off your mortgage if you can OR look to put money on deposit. An Post have best rates at the moment.

You could invest in equities/property but personally I wouldnt bcoz I think you'd lost a ****load.

Eglinton

I just want to make a general comment here.

OP, I don't know your personal circumstances and I don't want to patronise you. Since you got your mortgage you seem to have done quite well for yourself, which is great.

It just seems a bit odd that someone who managed to get an affordable mortgage could be in a position a few years later to start thinking about buying a 2nd property as an investment. I'm not saying those that are on 'lower' (I use the term advisedly) incomes aren't entitled to invest. However it indicates to me that perhaps people who got these affordable mortgages didn't really need them thus precluding others more deserving from the scheme.

Back on topic, unless you've got a deposit of, as someone else has said, somewhere in the region of 30-50%, then the banks wouldn't even consider you for an investment property. In any case, I think you'd be mad to buy now for the myriad of reasons outlined in threads in this forum. It's a sure loser.

Treehouse72

OP, how have your circumstances changed since you got your AH mortgage such that you can save €40,000 and are now in a position to fund a €250,000 investment property? Did you get a new job or pay rise since the time you applied for AH?

Da GOAT

AH can be gotten on a fairly decent wage, a couple can earn below like 70k a year i think at the time of application. i looked into it b4.

Tigger

yup they were like the lotto at the time

Qwerty27

another post where the OP disappears when the questions start being asked!

Victor

Qwerty27 wrote: »

another post where the OP disappears when the questions start being asked!

People have lives outside the internet.

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OP, I think you need to be careful and ask yourself why you are buying a second property. Will this be a holiday property or a rental. Rentals have difficulty covering their costs with rising interest rates and holiday properties are pure luxuries.

dumb_parade

Its fairly clear from the title of the post that he intends to own two homes.