Chances of a second mortgage

lbyrne121

Hi All

i would really appreciate if someone could give me any advice before i go to banks/brokers

I currently have a property with a mortgage of approx 190K remaining.
I am in negative equity of approx 90K. I am looking to move as the apartment is pretty small. I have had no problems in the past renting out, I am currently renting it out at the moment. My mortgage repayments are 660 per month and I get 750 per month in rent.

Between myself and my fiance are income is combined 85K per annum both permanent positions. We do not have any loans, credit cards etc. We have 80K in savings and are saving 2800 per month. We are looking for a mortgage of approx 170-180K.

I was wondering what are the chances of even being considered by banks for a mortgage or would it be best if my fiance went on his own without my negative equity?

homer911

Failure to declare all liabilities would be an automatic red flag with the bank. Any ICB check would probably throw this up.

bee06

I don't think the OP suggested anywhere about not declaring the current mortgage?

OP, I've done this and the mortgage and wage figures were similar to yours. Own an apartment in negative equity (mortgage payment is higher than yours) and got 2nd mortgage with my fiancé. We had to show we could pay both mortgages with our wages alone (they didn't take rental income into account). We were saving in excess of the payment for the 2nd mortgage after stress testing. Get a good broker because all the banks take the first mortgage into account in different ways.

Edited to add: I should clarify that this was before the new central bank rules so they might come into play.

Trish56

lbyrne, you should have no problem getting a mortgage of 170/180k on the details you provided. Is your current mortgage on a tracker rate. Will also depend on your ages and how many dependents you have however looks quite a strong case.
Best of luck

lbyrne121 wrote: »

Hi All

i would really appreciate if someone could give me any advice before i go to banks/brokers

I currently have a property with a mortgage of approx 190K remaining.
I am in negative equity of approx 90K. I am looking to move as the apartment is pretty small. I have had no problems in the past renting out, I am currently renting it out at the moment. My mortgage repayments are 660 per month and I get 750 per month in rent.

Between myself and my fiance are income is combined 85K per annum both permanent positions. We do not have any loans, credit cards etc. We have 80K in savings and are saving 2800 per month. We are looking for a mortgage of approx 170-180K.

I was wondering what are the chances of even being considered by banks for a mortgage or would it be best if my fiance went on his own without my negative equity?

lbyrne121

Thank you all for your responses.. I am currently on a tracker mortgage with ptsb..
No dependents at the moment.. would I have to pay the 20 per cent deposit or because I am in negative equity it would apply to me? I am 32 and my fiance is 35.

Trish56

Yes you are a second time buyer so must come up with the 20% deposit. You mentioned you have 80k in savings so presume you will be able to cover it. If not the bank are allowed to make exceptions and can lend up to 90% however I would say their quota is used up for 2015 so if you need to borrow over 80% I would wait until January to apply. Remember under new Central Bank rules you can only borrow up to 3.5 times your joint income = €297,500.
Trish

lbyrne121 wrote: »

Thank you all for your responses.. I am currently on a tracker mortgage with ptsb..
No dependents at the moment.. would I have to pay the 20 per cent deposit or because I am in negative equity it would apply to me? I am 32 and my fiance is 35.