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[Second time buyer mortgage - Ireland - Cork] - Can you have 2 residential mortgage

  • 29-10-2021 11:37pm
    #1
    lchulo
    Registered Users Posts: 23 ✭


    Hi everybody,


    Can you buy a property with a first buyer mortgage (with intention to live in it), then the following year buy a second property (with intention to live in it) with a second buyer mortgage without having to sell the first one ?

    Or do you necessarily have to repay the first one or sell the first one before buying a second property ?

    The reason I'm asking this question is because I would like to assess if I would have to spend all my savings in the first property deposit or spend 70% of my saving in the first one and 30% in the second one so I could meet minimum deposit requirements for the second property.


    I'd welcome any objective and constructive opinion.

    Thanks.



Comments

  • #2
    [Deleted User]
    Posts: 3,505 ✭ [Deleted User]


    Yeah you can have more than one residential mortgage. However:

    - If you end up renting out one of the properties you should inform the bank, and it may affect your interest rate.

    - if you intend on living in both, it means at least one of the properties will be unoccupied for periods of time. This could affect your home insurance, so you'll need to make sure you can get cover. Insurance cover is usually a requirement for a mortgage.

    - The repayments for the first mortgage will be taken into account as an expense when your repayment capacity for the second mortgage is calculated.



  • #3
    XsApollo
    Registered Users, Registered Users 2 Posts: 2,487 ✭✭✭XsApollo


    Did this a couple of years ago, PTSB took possible rental income from the first property into consideration for repayment ability.

    lucky I also got a deposit exemption for the second house.

    not sure if we did have the first mortgage with PTSB ( we didn’t ) would they have automatically changed it to a buy to let or how that would work.



  • #4
    Q&A
    Registered Users, Registered Users 2 Posts: 561 ✭✭✭Q&A


    https://www.boards.ie/discussion/comment/118098844#Comment_118098844

    That's interesting, how did the rental income compare to the mortgage repayments?

    I'm a couple of years into my mortgage and wondering what the best approach would be if I ever wanted to move. I don't want to become a landlord but I like the idea of doing something like this to avoid having to juggle a sell-rent-buy situation. But like the OP says it's figuring out what to plough into the first mortgage versus holding some money back for the potential second one



  • #5
    XsApollo
    Registered Users, Registered Users 2 Posts: 2,487 ✭✭✭XsApollo


    I didn’t actually rent out the first house, it was all put in like that as to get the second one, the mortgage payments on on the first one were very small which helped in affording the second ,

    the mortgage was like 350 per month and rental income would of been near 1000 a month. I don’t think they took in all possible rental income , more like a certain percentage if I remember correctly.

    best is go in to the mortgage advisor in the bank and explain what you are trying to do.

    second property is obviously more expensive and harder to get over the line.

    20% deposit and

    I think I needed like 6 months or a years mortgage payments for the other house in my account also.

    Depends on the bank I suppose how they calculate it all.



  • #6
    lchulo
    Registered Users Posts: 23 ✭lchulo


    Thanks for your comments.

    Looks like the potential rental income from the first property could help the decision in the mortgage for the second property (maybe with deposit exemption as XSApollo mentioned). It's up to the bank I guess. I would have to talk to the bank advisor.

    My idea is that I want to invest in a 2 bedroom apartment but I would despise the fact of sharing the apartment for more than 1 year. I know it sounds very selfish because I would not mind 2 people sharing and paying me the rent for as long as possible 😁

    So my solution would be to buy a 1 bedroom apartment the following year and live in that apartment. Or even renting a 1 bedroom apartment (if I did not meet mortgage conditions).

    But from the information you provided, I would have to inform the bank I'm moving out of the apartment and they would change the rate 😫



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