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Mortgage 2nd House ( own 1st)

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  • 25-02-2018 2:32pm
    #1
    thierry14
    Closed Accounts Posts: 1,480 ✭✭✭


    Hi All

    Just wondering has anyone upgraded house lately?

    Is better to go through a broker or a bank for my situation?

    Every option I can find is for first time buyers online

    My situation

    I own a house worth about 150-160k, bought with cash.

    I want to buy a nicer rural house for approx 240k

    I have about 15k in savings, I am going to have to take a small mortgage

    I earn base salary 50k, wife part time at the moment on about 15k, 1 young child, no debt

    I don't know if this is possible but I would like to use house I own as equity against the mortgage I will take out

    Wondering if bank can give me say the 240k mortgage, I buy house i want, move in, then sell my current house and give the bank the sale price of say 150k, leaving 90k on mortgage

    Effictively I am looking for a mortgage of 90k, like when you trade in a car

    Is this possible?

    Or will I have to sell first

    Where I live in West Limerick there are 3 1 beds for rent nothing else, no houses for rent, joke of a situation

    Thats why I am reluctant to sell first and rent for while


Comments

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    #2
    Cuddlesworth
    Registered Users Posts: 13,994 ✭✭✭✭Cuddlesworth


    Approach a broker, it just makes dealing with multiple banks easier. You will need to either be in a chain(you both sell and buy at roughly the same time) or put your other house up as equity(so the total mortgage would be on both property's)


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    #3
    Hitman3000
    Closed Accounts Posts: 5,596 ✭✭✭Hitman3000


    If you are not a first time buyer, don't you need a deposit of 20% to purchase a house. So you would need 48k to purchase a 240k house.


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    #4
    Cuddlesworth
    Registered Users Posts: 13,994 ✭✭✭✭Cuddlesworth


    Hitman3000 wrote: »
    If you are not a first time buyer, don't you need a deposit of 20% to purchase a house. So you would need 48k to purchase a 240k house.

    Yep, but if he gets a mortgage on both houses, then he has roughly 165k equity for a loan of roughly 225.

    65*3.5 = 227

    If he sells, then he has a mortgage loan of 60-70k. The only issue there is that most banks are not really interested in loans that small for mortgages.


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    #5
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    Hitman3000 wrote: »
    If you are not a first time buyer, don't you need a deposit of 20% to purchase a house. So you would need 48k to purchase a 240k house.

    The central bank consider you a first time buyer if you haven't bought a house with a mortgage before. If both the op and his wife haven't had a mortgage before they may well be considered first time buyers for the central bank deposit rules.


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