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If you own one property outright, do you still need a full 20pc deposit for your seco

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  • 06-05-2020 11:26pm
    #1
    0gac3yjefb5sv7
    Closed Accounts Posts: 3,948 ✭✭✭


    Thanks


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    #2
    lomb
    Registered Users Posts: 6,031 ✭✭✭lomb


    30 actually as it classes investment


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    #3
    Victor
    Registered Users Posts: 78,400 ✭✭✭✭Victor


    Are you offering the first property as collateral?


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    #4
    Yermander
    Registered Users Posts: 98 ✭✭Yermander


    20% as standard for a 2nd time home buyer. Exceptions are available from every bank to allow a 10% deposit. There is a limit on the number of these they issue per year.


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    #5
    lomb
    Registered Users Posts: 6,031 ✭✭✭lomb


    If it was never mortgaged then technically you are a first time buyer and it's 10 percent unless as a buy to let in which case it's 30


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    #6
    dubrov
    Registered Users Posts: 3,569 ✭✭✭dubrov


    From a quick Google search:

    The Central Bank of Ireland defines a first-time buyer (FTB) as â borrower to whom no housing loan has ever before been advanced. This definition is not limited to previous housing loans in Ireland, i.e. it extends worldwide.

    Note, revenue have a different definition for the htb scheme.

    The type of mortgage (ppr or buy to let) depends on whether you plan to live in the property or rent it, not your ftb status

    There is nothing stopping you remortgaging your first house to use as a deposit on your second


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    #7
    bricky06
    Registered Users Posts: 381 ✭✭bricky06


    I am still in my first home so I am not an expert here but my understanding of the central bank rules is that they specify a LTV limit of 80% for second and subsequent homes rather than specifically stating the need for a 20% deposit.

    That would mean then that if the sale of your first home led to you needing a mortgage of <80% LTV on the second home then you would be OK.


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    #8
    ELM327
    Registered Users Posts: 21,989 ✭✭✭✭ELM327


    bricky06 wrote: »
    I am still in my first home so I am not an expert here but my understanding of the central bank rules is that they specify a LTV limit of 80% for second and subsequent homes rather than specifically stating the need for a 20% deposit.

    That would mean then that if the sale of your first home led to you needing a mortgage of <80% LTV on the second home then you would be OK.
    Mortgages, not homes.


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    #9
    random_banter
    Registered Users Posts: 614 ✭✭✭random_banter


    Yes, if it's your first MORTGAGE then it's 10%.

    If you own the home outright and have never had a mortgage on it, then it's your first mortgage.

    This was discussed on another thread last week briefly.


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    #10
    0gac3yjefb5sv7
    Closed Accounts Posts: 3,948 ✭✭✭0gac3yjefb5sv7


    Victor wrote: »
    Are you offering the first property as collateral?

    If you do that, is it still 20/30pc?


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    #11
    lomb
    Registered Users Posts: 6,031 ✭✭✭lomb


    Victor wrote: »
    Are you offering the first property as collateral?

    Bank told me before they would not take a second charge on a principal family residence so it cannot be cross collaterised. They can do on investment properties and probably prefer to do.


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    #12
    Mike3287
    Closed Accounts Posts: 379 ✭✭Mike3287


    lomb wrote: »
    If it was never mortgaged then technically you are a first time buyer and it's 10 percent unless as a buy to let in which case it's 30

    Is that true?

    I bought my house for cash in 2015 and was thinking of getting a 2nd house


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    #13
    nutjobb
    Registered Users Posts: 90 ✭✭nutjobb


    Not true, the bank told us you are not a first time buyer if you already own a house, whether you paid in cash or received a mortgage.

    Bast to check with your own bank though with these conflicting opinions.


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    #14
    housetypeb
    Registered Users Posts: 1,192 ✭✭✭housetypeb


    Desmond White Magnolia wrote: »
    If you do that, is it still 20/30pc?

    It's a numbers game, so it depends on your available cash for the deposit and the values of both properties, the one you owe outright and the one you're buying.


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    #15
    lomb
    Registered Users Posts: 6,031 ✭✭✭lomb


    nutjobb wrote: »
    Not true, the bank told us you are not a first time buyer if you already own a house, whether you paid in cash or received a mortgage.

    Bast to check with your own bank though with these conflicting opinions.

    Give them the central bank info, they likely have got their information wrong. Your definately a first time buyer if you never got a mortgage for a residential house. This is legally defined by the central bank and a bank cannot I think override that. They dont have to lend you 90% but your definitely a first time buyer and the central bank allows you to borrow 90%.
    Now if the second property is to be a buy to let and not your principal private residence I can only assume you need 30%


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