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Mortgage

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  • 28-05-2015 3:37pm
    #1
    lbyrne1221
    Registered Users Posts: 5 ✭


    Hi,

    I was wondering if someone could give me some advice before I go to the mortgage broker to see what I should expect;

    I am currently in negative equity (NE) of 100K, this is for a two bedroom apartment. Myself and my fiance want to buy a house as it is too small for future. My finance doesn’t pertain to this NE just myself. The apartment is currently rented and has been for the last 2 years with no issues of finding tenants. I am also on a tracker mortgage.

    My current salary is 45K and my finance is 40K. We have 80K between us in savings and do not have any credit cards, over drafts or loans. What are the chances that we would qualify for a mortgage of 220K?
    Would my finance be better applying for a mortgage on his own?

    Any advice would be greatly appreciated.


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    #2
    gmisk
    Registered Users Posts: 32,831 ✭✭✭✭gmisk


    The apartment is currently rented and has been for the last 2 years with no issues of finding tenants. I am also on a tracker mortgage.

    Are you allowed to have a tracker mortgage on a rental property?

    Without the NE it would be a dawdle...with it I am not so sure.
    I would very much doubt with a 40K wage your fiancée would get a mortgage of anywhere close to 220k....Id guess 160 max.


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    #3
    Jasper79
    Registered Users Posts: 507 ✭✭✭Jasper79


    lbyrne1221 wrote: »
    Hi,

    I was wondering if someone could give me some advice before I go to the mortgage broker to see what I should expect;

    I am currently in negative equity (NE) of 100K, this is for a two bedroom apartment. Myself and my fiance want to buy a house as it is too small for future. My finance doesn’t pertain to this NE just myself. The apartment is currently rented and has been for the last 2 years with no issues of finding tenants. I am also on a tracker mortgage.

    My current salary is 45K and my finance is 40K. We have 80K between us in savings and do not have any credit cards, over drafts or loans. What are the chances that we would qualify for a mortgage of 220K?
    Would my finance be better applying for a mortgage on his own?

    Any advice would be greatly appreciated.

    I was in similar position 2 years ago. Apartment in NE of about 80k , myself and girlfriend on similar salaries. We ended up getting approved for 300k although didn't take that much in the end.

    At that time broker advised only PTSB and KBC bank would give us a mortgage with my other property.

    Ended up going with KBC in the end. My advice get a good broker . If in dublin can PM you mine .


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    #4
    lbyrne1221
    Registered Users Posts: 5 ✭lbyrne1221


    I read that if you dont apply for the same bank as you original tracker you may keep it..
    Yes I understand on his own he wouldnt be able to get that but if we have 80K in savings that could increase it to 220K?


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    #5
    gmisk
    Registered Users Posts: 32,831 ✭✭✭✭gmisk


    lbyrne1221 wrote: »
    I read that if you dont apply for the same bank as you original tracker you may keep it..
    Yes I understand on his own he wouldnt be able to get that but if we have 80K in savings that could increase it to 220K?
    Sorry I missed the 80k part.
    I would think you would have a decent shot in that case even if your fiancée went on his own.


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    #6
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    lbyrne1221 wrote: »
    I read that if you dont apply for the same bank as you original tracker you may keep it..
    Yes I understand on his own he wouldnt be able to get that but if we have 80K in savings that could increase it to 220K?
    If you're looking to buy a property for €220k, I think you should be OK. The main problem is that as your deposit is shared, the bank will insist that you are both on the mortgage documents. And therefore you will both be assessed for affordability, along with the apartment.

    A good broker though in this case is worth its weight in gold.


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    #7
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    I wouldn't go to a mortgage broker personally, apply directly to the banks. Some don't deal with brokers. Put as positive spin on the NE as possible. Look for the crazies on Myhome and Daft trying to sell for way more than the property is worth an use that as your NE calculation.

    Apply to a different bank than the one the tracker is with initially but if you're knocked back everywhere else approach them on the basis of converting the tracker to a BTL - a massive carrot for Ulster Bank as I found out. Bloody expensive though.

    We we're really surprised we got 212K with me PT, wife on contract and with an apartment with some NE and 100K deposit. KBC were great. Our combined salaries would have been lower than yours.


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