Advice re: getting a mortgage In Ireland (we have a second house in the UK)

leelee77

Hi all,

I was just looking for some advice. Myself and my OH want to buy a house in 2014. We won't be a position to have enough of a deposit saved until then. We are aiming to save aboout 25k and want to get a mortgage of approx 180k.

Our details:
Next year we will be 37 & 38. We have 2 children. Our childcare costs €440 per month and we pay rent of €950 per month.

Our combined salary is €70k. OH is permanent and I am self-employed, although I have a rolling contract that is not likely to end anytime soon. OH earns €50k.

We also have a property in the UK that is worth €135,000. The mortgage on that is €110,000. We have a longterm tenant and the mortgage is €550 (which is what he pays, so it is covered every month).

I was just wondering if the property in the UK will adversely affect us getting a mortgage in Ireland. We would ideally like to keep it as it is in an up and coming area and prices are not falling in the area we have it.

Also, what are the chances of us getting a mortgage with the figures above? We can save €1800 a month.

Thanks in advance.

D3PO

surely you have a tax liability on the rent in the UK ergo rent doesnt cover the mortgage.

Either way banks are no longer factoring in rental income into applications. So they would be judging your ability to pay the new mortgage plus the UK one.

Given your ages they probably would only want to offer you a 20 year term aswell. So on initial view I would think you would have a very hard time getting approval as things stand.

as usual though Id reccomend messaging Killers1 he would have more insight than most in regards to what your likely to be offered in terms of a second mortgage.

are you planning on moving back here ? will that impact your jobs as in will you be seeking fresh employment ? This may also have an effect on any mortgage application

leelee77

Thanks D3PO. I will message Killers as well. Yes, we have to pay tax on the UK rent.

I thought that would be the case (re: rental income). We might just have to sell our UK property then. The main thing is that we have a house in Ireland.

We are living in Ireland now and have jobs/pay rent in Ireland.

D3PO

leelee77 wrote: »

Thanks D3PO. I will message Killers as well. Yes, we have to pay tax on the UK rent.

I thought that would be the case (re: rental income). We might just have to sell our UK property then. The main thing is that we have a house in Ireland.

We are living in Ireland now and have jobs/pay rent in Ireland.

The fact your living here will make things much easier for sure. No harm in making an application as it stands. If you are comfortable hanging onto the UK house and its giving you a good yield then no point in selling it unless you have to.

I mean in another year you will have paid a bit more off the capital and if prices arent going down in that area of the UK may infact even have a greater level of equity in that rental.

leelee77

D3PO wrote: »

The fact your living here will make things much easier for sure. No harm in making an application as it stands. If you are comfortable hanging onto the UK house and its giving you a good yield then no point in selling it unless you have to.

Thanks. Have messaged Killers to get some advice too. I am hoping if we have a decent deposit (we aim even aim for a 20% deposit) and can show that we are paying €950 per month rent and can save €1800 per month that this will stand to us. We are definitely not in the position to make an application this year, but I just want to make sure we are on the right track

D3PO

leelee77 wrote: »

Thanks. Have messaged Killers to get some advice too. I am hoping if we have a decent deposit (we aim even aim for a 20% deposit) and can show that we are paying €950 per month rent and can save €1800 per month that this will stand to us. We are definitely not in the position to make an application this year, but I just want to make sure we are on the right track

best of luck with it. Hope it works out for ya

leelee77

D3PO wrote: »

best of luck with it. Hope it works out for ya

Cheers! I'm sure you will see me on here a lot more as we are saving for a deposit. Lol