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Chance of securing 2nd mortgage?

  • 13-09-2016 9:11pm
    #1
    smokey20
    Registered Users Posts: 150 ✭✭


    Hi all, was just wanting some advise from people in the know, please.

    My wife and I plan on buying a site and building a house in the not to distant future.

    We currently have €60k in savings - will hopefully have over €70k by time we get to the business end of any mortgage application.

    Living in southeast. Both working full time, I'm earning €50k basic plus €10k car allowance and circa €5k bonus. She is earning €42k basic and circa €10k commissions and €4K bonus. We currently have a house we bought in 2008 with mortgage o/s of €170k and 16years remiaining - house bought for €230k and possibly could be sold at say €110k, so it's in negative equity.

    Our intentions are to keep the house with the the negative equity tracker mortgage attached (rent it out) and also get a second mortgage to build. Would factor in €80k for site and circa €300k for build and fitout.

    We have 3 dependants and we are aged 33yrs and 37yrs.

    We will be seeking financial advise from our own bank in relation to the above, however I would greatly appreciate any feedback from anyone in the know as to our chances of getting the mortgage to build, while we still have the o/s mortgage on a house that is considerably in negative equity.

    Thanks


Comments

  • #2
    lbyrne121
    Registered Users Posts: 206 ✭✭lbyrne121


    Did you ever get fiancial advice I am currentry in the same situation it would be grest to hear of any advice you got


  • #3
    beechwood55
    Registered Users, Registered Users 2 Posts: 532 ✭✭✭beechwood55


    I am not sure that lenders will take commission and bonus into account when calculating the mortgage amount. So you are looking for a total amount of €380,000?


  • #4
    lbyrne121
    Registered Users Posts: 206 ✭✭lbyrne121


    I don't under I am looking to get a second mortgage of 240k


  • #5
    zl1whqvjs75cdy
    Closed Accounts Posts: 4,042 ✭✭✭zl1whqvjs75cdy


    I think it's a mortgage of 310 k you are looking for op. Correct me if I'm wrong. Tbh I'd say you'll struggle to get a second mortgage, particularly for a self build.

    Your rental income is not guaranteed, the commission and bonuses are not guaranteed. Leaves you about 90 k guaranteed salary. This would technically qualify you for 315 k odd mortgage. But with three dependents this will be decreased a bit even if you do get approval.


  • #6
    nhunter100
    Closed Accounts Posts: 4,990 ✭✭✭nhunter100


    Btw if your first property has a tracker mortgage but you plan on renting it out. You'll need to inform your bank and most banks will take the tracker off you in this instance.


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  • #7
    lbyrne121
    Registered Users Posts: 206 ✭✭lbyrne121


    You wouldn't need to technically inform the bank if you go for a mortgage with someone else


  • #8
    nhunter100
    Closed Accounts Posts: 4,990 ✭✭✭nhunter100


    lbyrne121 wrote:
    You wouldn't need to technically inform the bank if you go for a mortgage with someone else


    Withholding information from a bank that has a material effect on a mortgage you have with them is not a good idea tbh.


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