Mortgage Advise

MrDo

Folks,

As a couple we have a combined annual income of €120k, savings of €230k. Both in permanent jobs. i bought a house a few years back but its in about €40k in negative equity & valued at 250k now. House is fully let for 3 years and costs €5k (rental income etc)after taxes etc paid. We are renting. Unf it dont suit to live in this loc anymore. Just wondering how much of a loan is possible these days? Is mortgage calc 3.5 x income less existing mortgage (420 - 250k) €170k? We were hoping for much more if possible around 300-400k mark Has anyone any information / advice on whether banks offer this?

bootybouncer

why borrow when you have savings of 230k..............................rather strange

The_Conductor

They don't look at joint income as a couple- its 3.5 times the main income and one times the secondary income (on the basis that its quite probable that some stage in the future you're going to be down to 1 income with children etc).

Your current outgoings- mortgage on the current property/credit card any other outgoings- are all going to count towards a measure of affordability- with a max of 35% of your NET income normally allowable for mortgage purposes.

To be honest with you- the current property is costing you 5k a year after taxes etc, its in negative equity and you don't want to live there. Why are you holding onto it? You could sell it, cover the negative equity from savings and start with a clean slate at the bank- who would welcome you with open arms given your 200k odd in savings you'd have even after clearing the NE associated with the first property?

As an aside- you're suggesting a budget of 400-600k for a new purchase (providing mortgage facilities fall into place etc). What have you in mind? You'd buy a hell of a lot of real estate for 600k these days!

spark23

what area you looking to buy in, a mortgage may not be required!