Hope of owning family home

GenGenie

Hi,

Both myself and my husband have very good credit rating, combined income of €88k - we have very good careers. I own an apartment - which is rented and has great potential. He (stupidly) bought houses with his brother, away from where we live, which are also rented out but are only interest only mortgages.

We have 39k saved to buy our own house and are having trouble getting a mortgage. Seriously, what do you have to do own your own house, we have been asked to move house a few times and cannot do it to my children again.

Whats our option, go on the social housing list? Its utterly depressing. Will I every own a house at this rate?

Stheno

GenGenie wrote: »

Hi,

Both myself and my husband have very good credit rating, combined income of €88k - we have very good careers. I own an apartment - which is rented and has great potential. He (stupidly) bought houses with his brother, away from where we live, which are also rented out but are only interest only mortgages.

We have 39k saved to buy our own house and are having trouble getting a mortgage. Seriously, what do you have to do own your own house, we have been asked to move house a few times and cannot do it to my children again.

Whats our option, go on the social housing list? Its utterly depressing. Will I every own a house at this rate?

You're not a first time buyer so you need a 20% deposit.
And you won't qualify for the social housing list on joint income of 88k.

Also your existing houses will be factored in when calculating your eligibility for a mortgage. You currently seem to own several houses and an apartment between you, your partner and his brother.

Have you thought about selling one or more of those?

omb0wyn5ehpij9

GenGenie wrote: »

Hi,

Both myself and my husband have very good credit rating, combined income of €88k - we have very good careers. I own an apartment - which is rented and has great potential. He (stupidly) bought houses with his brother, away from where we live, which are also rented out but are only interest only mortgages.

We have 39k saved to buy our own house and are having trouble getting a mortgage. Seriously, what do you have to do own your own house, we have been asked to move house a few times and cannot do it to my children again.

Whats our option, go on the social housing list? Its utterly depressing. Will I every own a house at this rate?

You own an apartment and your husband part owns a house(s). You are doing a lot better than a lot of people.

It is obviously going to be a lot harder to get a mortgage seeing as you already have 2 mortgages between you. As per the previous poster, have you thought about selling what you currently have?

Butters1979

Sorry but it sounds like you own both an apartment and houses, just not the one you want to live in.

Anyway, not much information to go by there, but basically, the bank have reviewed your financial situation and decided you are too much of a risk to give you a mortgage.

To answer in more detail, how much is your apartment and other houses worth and how much equity is in them. What are your monthly repayments and how much outgoings do you have? How much do you earn from these properties in rent?

The biggest problem most likely is the houses your husband bought. Is he in a position to sell up? If they are in negative equity and you're not paying off the mortgage, then you already have large debts and the bank won't add to that.

DellyBelly

Sell both your places and use the extra money to put against your deposit. If you have negative equity in one or both the other places then forget it the banks won't go near you. I'm afraid the prospect for people who bought a place from 2005 -2011 have a very slim chance of getting something else.

intheclouds

GenGenie wrote: »

Hi,

Both myself and my husband have very good credit rating, combined income of €88k - we have very good careers.

This is just to inject a note of realism - the combined income here is low imo. Is it likely to increase in the future?

GenGenie wrote: »

I own an apartment - which is rented and has great potential. He (stupidly) bought houses with his brother, away from where we live, which are also rented out but are only interest only mortgages.

What do you mean by potential for the apartment? Could you live in it?

Why dont you sell one or more of the properties you mention above?

GenGenie wrote: »

We have 39k saved to buy our own house and are having trouble getting a mortgage. Seriously, what do you have to do own your own house, we have been asked to move house a few times and cannot do it to my children again.

Depends on the house but 20% deposit is the norm these days.

However, you already own an apartment and he owns houses, so why not live in one of those? Could your husband buy his brother out of one to live in?

GenGenie wrote: »

Whats our option, go on the social housing list? Its utterly depressing. Will I every own a house at this rate?

I think you need to sell up your current properties, save more, increase your income and then maybe the banks will be interested? Sounds easy right!

Or move into one of your current properties.

miezekatze

GenGenie wrote: »

Hi,

Both myself and my husband have very good credit rating, combined income of €88k - we have very good careers. I own an apartment - which is rented and has great potential. He (stupidly) bought houses with his brother, away from where we live, which are also rented out but are only interest only mortgages.

We have 39k saved to buy our own house and are having trouble getting a mortgage. Seriously, what do you have to do own your own house, we have been asked to move house a few times and cannot do it to my children again.

Whats our option, go on the social housing list? Its utterly depressing. Will I every own a house at this rate?

You seem to own several properties already so I think if you want to buy a 'family home' you'll need to prioritise that and maybe sell your existing properties. You can't have it all I guess, and the idea of someone on 88k who owns several houses going on the social housing list seems a bit ridiculous tbh.

snubbleste

What is a 'family home'?

McGrath5

I find it utterly depressing that a couple with 2 properties, on a combined in income of €88k with savings of €39k are having thoughts about going on a housing list.

GenGenie

A family home is something that we can all fit into it!! The apartment I have is tiny and seriously not an option to live with a family.

I know our salaries aren't fantastic, but it has allowed us to save our deposits but are banks not giving a chance to people to buy a house that they can fit into. The houses my husband owns are 3 hours away from where we are living. Yes, its ridiculous that my husband and his brother are only on interest only but his brother is in a bad way financially (owns 10 rented properties!) so he cannot afford to go off interest only.

Of course, it was rhetorical that we would go on the social housing list - I mean, I have never defaulted on a thing on my life and are hard working with a nearly €40k deposit - what else can we do to but a steady house for our kids?

Its just very frustrating. I think all your posts were a bit harsh like we are so lucky to own all these properties, I would ditch them all if I could!!

GenGenie

McGrath5 wrote: »

I find it utterly depressing that a couple with 2 properties, on a combined in income of €88k with savings of €39k are having thoughts about going on a housing list.

OMG - I didn't actually mean this!?!?!?!? It was rhetorical and I wasn't actually thinking of going on the social housing list

JimmyMW

GenGenie wrote: »

Its just very frustrating. I think all your posts were a bit harsh like we are so lucky to own all these properties, I would ditch them all if I could!!

Can you go into more detail why you cannot sell either the apartment or some of the other houses?

Stheno

GenGenie wrote: »

Its just very frustrating. I think all your posts were a bit harsh like we are so lucky to own all these properties, I would ditch them all if I could!!

So why not sell your apartment? that's one less that you have and will improve your standing with the bank?

You might say the posts are a bit harsh, but that's a bit cloud cuckoo land. You already have at least two mortgages you need to pay, one of which is interest only, a fairly small deposit for a new house, and an income level that even without the existing properties would probably only get you a mortgage of about 250 - 300k. With the existing mortgages it is most likely a non-runner.

You'll not get a mortgage in your current circumstances unless you change something about it, and save further. Where are you looking to buy your family home?

lawred2

Firstly 88k while grand isn't a huge amount of money

Especially when you seem to have already acquired a list of properties

Either sell up or put up because nobody is going to lend to you as it is.

steamsey

Hi. I had to respond as I was in a similar (ish) situation myself.

There is hope. Just because you have neg equity or 2 mortgages does not make you the pariah you once were, to the banks anyway. Certain banks' attitudes have changed towards neg equity. My advice to you is keep saving, and get yourself a good mortgage broker - they can do wonders for your application. Are you managing your bank statements and outgoings properly? If not - you need to start this asap.

intheclouds

GenGenie wrote: »

Its just very frustrating. I think all your posts were a bit harsh like we are so lucky to own all these properties, I would ditch them all if I could!!

So why cant you?

GenGenie

intheclouds wrote: »

So why cant you?

I honestly haven't put any of them up for sale yet but I will to see what happens...

mahoganygas

With respect, I find it a bit insulting that you are looking for sympathy here, and worse - another mortgage!!

It's not a great situation to be in but why on earth would somebody buy an apartment if they planned on having several children?

I had the opportunity to buy properties back in 2005 buy I didn't. I wasn't greedy. Now I'm paying ridiculous rent and struggling to meet strict FTB requirements for my first home. I've inherited a broken housing market from speculators such as yourself and I'm the one paying for it.

I'm sorry that you're struggling to provide a family home but you need to dump all of your bad investments, rent a large affordable home and start again from scratch. The speculation has to end.

GenGenie

steamsey wrote: »

Hi. I had to respond as I was in a similar (ish) situation myself.

There is hope. Just because you have neg equity or 2 mortgages does not make you the pariah you once were, to the banks anyway. Certain banks' attitudes have changed towards neg equity. My advice to you is keep saving, and get yourself a good mortgage broker - they can do wonders for your application. Are you managing your bank statements and outgoings properly? If not - you need to start this asap.

Thanks for that. Yes trying with a few brokers, yes bank statements are organised definitely. I am looking at a house for €170k so would only need a mortgage €136k so that's attainable (I thought). Thanks for your positive post though, honestly, I needed to hear something positive.

Butters1979

I think the crux of the issue is you're already in debt (I assume) and are looking to go further into debt. I understand it's not easy to get a mortgage but honestly the more in debt you are the less likely you are to be given further loans.

The best chance you have is getting rid of some of that by selling up. The problem is if you are in negative equity selling up will not get you completely out of debt.

GenGenie

mahoganygas wrote: »

With respect, I find it a bit insulting that you are looking for sympathy here, and worse - another mortgage!!

It's not a great situation to be in but why on earth would somebody buy an apartment if they planned on having several children?

I had the opportunity to buy properties back in 2005 buy I didn't. I wasn't greedy. Now I'm paying ridiculous rent and struggling to meet strict FTB requirements for my first home. I've inherited a broken housing market from speculators such as yourself and I'm the one paying for it.

I'm sorry that you're struggling to provide a family home but you need to dump all of your bad investments, rent a large affordable home and start again from scratch. The speculation has to end.

I wasn't greedy - I was told that if I didn't buy something, apartment was all I could afford at the time. Fair play to you for having the foresight not to buy, you should get a job with the central bank.

I wasn't looking looking for sympathy at all - just general advice on what to it. Apologies if I "insulted you" :rolleyes:

Stheno

GenGenie wrote: »

Thanks for that. Yes trying with a few brokers, yes bank statements are organised definitely. I am look at a house for €170k so would only need a mortgage €136k so that's attainable (I thought). Thanks for your positive post though, honestly, I needed to hear something positive.

HOw many of the ten houses does your partner have mortgages on with his brother? Is it just a few of them or all ten?

draiochtanois

This post has been deleted.

GenGenie

Stheno wrote: »

HOw many of the ten houses does your partner have mortgages on with his brother? Is it just a few of them or all ten?

Just two

Butters1979

OP, you seem to be very busy defending yourself from people you don't need to defend yourself to. Forget about that. Plenty of people bought back then for various reasons, it's not a crime.

You've been asked a few times for more details and you haven't given us much to go on. I understand these details are very personnel so it's up to you if you want to give them, but if you don't you're not going to get much more advice.

How much in debt (mortgage still owed on the houses) are you and what are those houses valued at. What are the monthly repayments and what are you earning (after tax and expenses) through rent for these properties.

It's most likely the fact that you have both debt and outgoing expenses which make it too much risk to lend to you. I'm not sure why you would expect a bank to lend to you in this situation.

Stheno

GenGenie wrote: »

Just two

So you've three existing mortgages.

I'd say if you got rid of two of them, you'd be in a much better position.

Tigger

McGrath5 wrote: »

I find it utterly depressing that a couple with 2 properties, on a combined in income of €88k with savings of €39k are having thoughts about going on a housing list.

why?

stoplooklisten

Why not look for a job in the area and relocate to one of the houses your partner has?


Job done, family home

Butters1979

Tigger wrote: »

why?

Because with an income of 88K and already owning property, going on the affordable housing list is basically looking for a hand out when you should not need one.

It's like looking for dole money when you have a job.

lawred2

Your best hope here is to sell the apartment and apply for the mortgage on your own. Your partner's interest only mortgage are bad news really.

intheclouds

lawred2 wrote: »

Your best hope here is to sell the apartment and apply for the mortgage on your own. Your partner's interest only mortgage are bad news really.

As a married woman both of their means will be assessed for any mortgage application.