What's my chances of getting a mortgage?

bmcdona

Hi All,

I'd be grateful for any advice any of you could give me on my situation.

We've a mortgage on my farm of 190,00E (30 acres bought for 340K, but realistically now only worth approx. 250K). we're currently renovating our house, which needed more renovating that originally thought, and will need another 45K to finish it (had to take off the roof and re-do it internally:() - no mortgage on the house which is seperate from the farm.

in the meantime, we've moved into a house I bought 10 years ago as a rental property while our own house is being renovated- mortage on this is 42,000E. (house realistically worth approx 180,000E)

I've used up all my savings on my renovation, and am looking to mortgage the rental property to fund the renovation. I've also got a Credit union loan of 25K. My husband & my income total 67,000K (excluding farm income which doesn't amount to much after the mortgage is paid).

What are the chances of being approved for the re-mortgage?.. both Farm loan and rental house mortgages are with ACC. I'm going to suggest remortgaging the rental property for 112K, to cover the renovations, CU loan, and existing mortgage.

I haven't missed any of my repayments for any of the mortgages or CU loan, but my bank account has an overdraft and i've gone over the limit quite a lot in the past few months due to the house renovations - will this matter?

PS - Someone said that ACC aren't giving mortgages...I wonder does this also mean they won't give a remortgage?

I'd really appriciate any advise any of you can give... thanks!

ferga_com

On the figures alone you come close to qualifying for what you need. But going over the overdraft will work against you. Can you wait for a few months until you can get about 4 - 6 months bank statements on your account with no unauthorised overdrawings?

amytomjerry

You may find that the Bank will not offer you a remortgage to pay off loans...my own bank refused me on this basis.

gogo

Personally dont think that this is too viable. Most placecs will give you about 4.25 times your income, ie you can afford to borrow that much: 67k * 4.25 = 285k.

you already have 190k + 42k + 25k = 257k + another 45k = 302k. Not much outside, but still outside. I would imagine that you need to add in the credit union loan for affordability purposes, so leaving it out wouldnt help you, as the mortgage repays with the loan repays might be too high?

Presently the aib (My local one anyway) isnt taking switchers and the boi and most other places will not do switchers for debt consolidation as stated. Also the overlimits on your account will absolutley affect you. Its not considered good account operation which a lender will be looking for.

Saying all that you dont know until you ask, why dont you ring around and set up some meetings with your local banks and see what they say.
Good Luck

bmcdona

Thanks everyone for your posts... I forgot to mention the farm income (approx. 36K), so hoping this will make a difference.

I approched the bank today, and they would only be interested in mortgaging a rental property - which really surprised me as I thought banks weren't doing any rental mortgages at all, so we're considering renting out our own house which already has a mortgage, and living in the renovated house when finished until the market picks up, as chances of selling are probably quite slim in this market... so we'll see what happens... fingers and toes crossed

Thanks again