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Partner and Me (First Time Buyer or Not?)

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  • 24-04-2018 10:23am
    #1
    never_mind
    Registered Users Posts: 915 ✭✭✭


    Hi all

    my partner and I want to buy a property together. They already have a primary property (apartment) that we want to keep to rent and eventually sell when we are retired.

    What is the situation with buying a second home? Do we buy together and are jointly assessed? Just wondering how much we could afford (combined income is 115k per annum, current outgoings for apartment mortgage is 1500 per month)

    Thanks


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    #2
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    So you won't be first time buyers and the it's 3.5x income - the outstanding mortgage on the apartment. Although when we bought they took part of the income from renting the apartment into account. I'm pretty sure they don't do that now but I'm open to correction.

    I personally wouldn't open my self up to being a LL unless I really couldn't help it (neg equity etc.).


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    #3
    never_mind
    Registered Users Posts: 915 ✭✭✭never_mind


    Samuel T. Cogley wrote: »
    So you won't be first time buyers and the it's 3.5x income - the outstanding mortgage on the apartment. Although when we bought they took part of the income from renting the apartment into account. I'm pretty sure they don't do that now but I'm open to correction.

    I personally wouldn't open my self up to being a LL unless I really couldn't help it (neg equity etc.).

    It's in neg equity by around 100k... so I wonder will it ever go back to where it should be! I might book a chat with a bank.


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    #4
    witchgirl26
    Registered Users Posts: 2,141 ✭✭✭witchgirl26


    OP if you and your partner aren't married that you could be a first time buyer if you do a sole application. However if your partner is on the application, you're not a first time buyer. Exemptions are available to both the 3.5 x salary and the 20% deposit for second time buyers but you can only avail of one (if you satisfy the criteria).

    They will take account of some of the income you could get from renting but you'll be required to provide them with a valuation for rental of the property you're keeping. They won't take into account all of it but some.

    Your best bet is to get a call back from a few of the banks and see what they're offering as well as understanding what you're comfortable selling. Think about having to potentially cover the apartment mortgage and the new mortgage.


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    #5
    Captain Flaps
    Registered Users Posts: 1,834 ✭✭✭Captain Flaps


    witchgirl26 wrote: »
    Exemptions are available to both the 3.5 x salary and the 20% deposit for second time buyers but you can only avail of one (if you satisfy the criteria).

    The ship has sailed on this for the year in some banks, and for the next few months in others. Quite a few threads popped up recently on the exceptions being used up.


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    #6
    witchgirl26
    Registered Users Posts: 2,141 ✭✭✭witchgirl26


    Captain Flaps wrote: »
    The ship has sailed on this for the year in some banks, and for the next few months in others. Quite a few threads popped up recently on the exceptions being used up.

    My understanding from someone in the industry was that most banks now split their allocation as such among the 4 quarters based on when most applications come in (higher volume at start of the year and in Q3 than during the summer) and that while they might be "full" at the moment, it could change in a few months. It was due to the Central Bank essentially giving out that people who tried to get one later in the year couldn't even if they didn't know they needed one.

    Always worth asking the bank for one though.


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