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best way to buy a second house?

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  • 30-04-2017 1:57pm
    #1
    newladhere
    Registered Users Posts: 2 ✭


    hi all,
    looking to buy a second house, i'm going halves with someone, house cost 100k, so spending 50k each.
    my situation is ive mortgage on mine(house value 198k in 2006) 140k left and had got a top up of 25k. so ive around 160K left in total. now they gave me top up back in 2007 but as a separate mortage(not sure if they are all done this way, i presumed at the time the 25k would be added to original mortgage,and be one payment combined)
    im looking to get 50k for to buy second peoperty.my questions are:
    Would i possibly get another mortgage another top up for 50k?
    i would be paying it back over maximum 30yrs.
    And would i be allowed to buy a second property with this top up of 50K?
    Is there any taxes to consider if we bought the 2nd house?

    Thanks..


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    #2
    SteM
    Registered Users Posts: 6,724 ✭✭✭SteM


    newladhere wrote: »
    hi all,
    looking to buy a second house, i'm going halves with someone, house cost 100k, so spending 50k each.
    my situation is ive mortgage on mine(house value 198k in 2006) 140k left and had got a top up of 25k. so ive around 160K left in total. now they gave me top up back in 2007 but as a separate mortage(not sure if they are all done this way, i presumed at the time the 25k would be added to original mortgage,and be one payment combined)
    im looking to get 50k for to buy second peoperty.my questions are:
    Would i possibly get another mortgage another top up for 50k?
    i would be paying it back over maximum 30yrs.
    And would i be allowed to buy a second property with this top up of 50K?
    Is there any taxes to consider if we bought the 2nd house?

    Thanks..

    Can't see a bank allowing you to buy a new shared property with a 50k top up on an existing mortgage. They want to protect their loan and there are a lot of variables in that equation.


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    #3
    ZaffizaKunt
    Banned (with Prison Access) Posts: 34 ✭ZaffizaKunt


    newladhere wrote: »
    This isnt going to work I'm afraid. The likelihood is that you are in negative equity by maybe up to €50K on your current house so that pretty much rules out and kind of extra mortgage.

    If the second house is worth €100K then the absolute max you will get on it as an investment mortgage is 70% so you will need at least €40K in cash between to include all the costs associated.

    Have you any savings at all?


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    #4
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    Good on ye! Keep it going lads, Dublin apartments are great value investments - just a few more grand to go :pac:

    It's doubtful you'll be able to borrow beyond the value of your current home - you may be able to borrow at a buy t let rate on the new house, depending on your salary. I'd suggest asking down your local pub, sorry I mean a Financial advisor and ideally an accountant in regard to tax liabilities.


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    #5
    newladhere
    Registered Users Posts: 2 ✭newladhere


    My partner has the 50k. So that's 50k savings we have, thats why were looking for the other 50k


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    #6
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    newladhere wrote: »
    My partner has the 50k. So that's 50k savings we have, thats why were looking for the other 50k

    So get a BTL mortgage - the interest on the loan on the house being (presumably) rented out attracts tax relief at 80%.


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    #7
    ZaffizaKunt
    Banned (with Prison Access) Posts: 34 ✭ZaffizaKunt


    newladhere wrote: »
    My partner has the 50k. So that's 50k savings we have, thats why were looking for the other 50k

    Is your partner named on your mortgage at present? If they aren't then you might have some chance. However if they are and the likelihood is your current house is still in negative equity so you haven't a hope of getting a BTL mortgage I would imagine.


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