Best bank for second mortgage

mark316

Hey looking for advice on the best bank to get second mortgage
I'm 31 partner 34
We have 2 children but no childcare costs
We have tracker mortgage 2.3% and have 265k remaining house worth 200 max don't want to sell
Income 80k combined
Savings 110k
No other loans or debts

What would chances of another mortgage for second property?

bmwguy

mark316 wrote: »

Hey looking for advice on the best bank to get second mortgage
I'm 31 partner 34
We have 2 children but no childcare costs
We have tracker mortgage 2.3% and have 265k remaining house worth 200 max don't want to sell
Income 80k combined
Savings 110k
No other loans or debts

What would chances of another mortgage for second property?

I read it first and thought not a hope but I missed the part about your savings of 110k, is that the correct amount?

It seems very high considering you are in negative equity to the tune of 65k

Anyway, assuming it is, I think your best bet would be to pay off some of the first mortgage at least to get yourself some equity in it.

You made no mention of the amount of the second house, this is obviously the key point but you could clear the other mortgage down a bit and still have 50k to finance the new one. Its a balancing act here plus one of them will be then seen as an investment property. Personally I would get myself out of the 65k hole you are in at the moment, keep paying and start savinga again. Is the 110k regular savings or did it come as a once off source?

You will have to speak to a broker with bank contacts though I dont know how the banks will treat the negative equity v savings scenario

Darkest Horse

bmwguy wrote: »

I read it first and thought not a hope but I missed the part about your savings of 110k, is that the correct amount?

It seems very high considering you are in negative equity to the tune of 65k

Anyway, assuming it is, I think your best bet would be to pay off some of the first mortgage at least to get yourself some equity in it.

You made no mention of the amount of the second house, this is obviously the key point but you could clear the other mortgage down a bit and still have 50k to finance the new one. Its a balancing act here plus one of them will be then seen as an investment property. Personally I would get myself out of the 65k hole you are in at the moment, keep paying and start savinga again. Is the 110k regular savings or did it come as a once off source?

You will have to speak to a broker with bank contacts though I dont know how the banks will treat the negative equity v savings scenario

Sorry if I'm ignorant on this but if he is in negative equity in a house that he is living in why would he throw good money after bad? The value of his house is only negative if he is looking to sell that house? Otherwise he's just in a situation in which he needs to pay back the 265k that enabled him to buy the house?

mark316

Yeah 110k savings is right.
Want to keep first house as a pension and with being on tracker interest rates low would easily pay for itself

Haven't really looked at houses for prices but between 250-350k and use savings towards it

bmwguy

mark316 wrote: »

Yeah 110k savings is right.
Want to keep first house as a pension and with being on tracker interest rates low would easily pay for itself

Haven't really looked at houses for prices but between 250-350k and use savings towards it

You will have 265 + (250-110)= 405 or 265 +(350-110)= 505 of a mortgage liability on 80k combined income with 2 kids if you buy a new house. I can't see the banks going for it to be honest. What if you can't rent out other house for any reason? What if your tenants don't pay you? The banks will ask this. You will be taxed 50% on rental income as well by the way do make sure you allowed for this.

No trackers anymore so I change my mind a little bit put down as much a deposit on this one rather than pay off tracker as the rate will be higher so borrow as little as possible. It would be seen as a huge strain on your finances by lenders. Did you have kids getting first mortgage? Best of luck but I think it's going to be tough.

mark316

bmwguy wrote: »

You will have 265 + (250-110)= 405 or 265 +(350-110)= 505 of a mortgage liability on 80k combined income with 2 kids if you buy a new house. I can't see the banks going for it to be honest. What if you can't rent out other house for any reason? What if your tenants don't pay you? The banks will ask this. You will be taxed 50% on rental income as well by the way do make sure you allowed for this.

No trackers anymore so I change my mind a little bit put down as much a deposit on this one rather than pay off tracker as the rate will be higher so borrow as little as possible. It would be seen as a huge strain on your finances by lenders. Did you have kids getting first mortgage? Best of luck but I think it's going to be tough.

No had no kids then have house 7/8 years now just need to bigger house

Trish56

Hi Mark316, Based on the information you gave you should have no problem borrowing 200k or more subject to having a clean credit record and will also depend on the rental income you will receive from the property. I based figures on a 300k purchase price and 200k mortgage with rental income of €1200 per month. Can check higher figures if needed.
Trish 56.

mark316 wrote: »

Hey looking for advice on the best bank to get second mortgage
I'm 31 partner 34
We have 2 children but no childcare costs
We have tracker mortgage 2.3% and have 265k remaining house worth 200 max don't want to sell
Income 80k combined
Savings 110k
No other loans or debts

What would chances of another mortgage for second property?

Bank of Ireland: Sarah

mark316 wrote: »

Hey looking for advice on the best bank to get second mortgage
I'm 31 partner 34
We have 2 children but no childcare costs
We have tracker mortgage 2.3% and have 265k remaining house worth 200 max don't want to sell
Income 80k combined
Savings 110k
No other loans or debts

What would chances of another mortgage for second property?

Hi Mark,

Sarah here from Bank of Ireland, and we just saw your post so thought we’d offer our input. In this instance, from what you’ve said here we may be able to offer you a Mover mortgage for your new property and that you can retain your mortgage on your current property. As others have pointed out here, we’d advise you to speak with a mortgage advisor who can go through this with you.

Let us know over on our Talk to Bank of Ireland forum here on Boards if you have any queries for us.

Cheers,
Sarah