Getting a second mortgage

ElKavo

We currently have a mortgage (tracker) and have not missed a payment in 5 years ( since mortgage has been taken out). We are currently toying with the idea of moving home. We can easily rent the house for the cost of the mortgage and tax on income so that is "washing its own face". In the current market and with an income of 49k what could I reasonable expect to get as a mortgage? Presuming that I have no existing debt to third parties. Three kids and I'm the sole income. Is it even going to be possible to get a mortgage. I am working in the same company for the last 9 years and am second to the top so job security is quite good. ( our company has grown by approx 300% in the last 4 years) Ideally we would like to get a mortgage of about 200k but have a deposit of 20 - 30K.

Thanks for all your input and advice

bee06

Based on my own experience as I'm in a similar situation and have been talking to banks each bank approaches the situation differently.

For example I was told by BOI that they will not consider rental income as part of the calculation so you have to be able to show you can pay both mortgages (and both mortgage payments will be stress tested for interest rate increases.)

TSB will take into account rent but the rent has to cover 1.2 times the mortgage payment (they assume occupation for 10 out of 12 months).

killers1

ElKavo wrote: »

We currently have a mortgage (tracker) and have not missed a payment in 5 years ( since mortgage has been taken out). We are currently toying with the idea of moving home. We can easily rent the house for the cost of the mortgage and tax on income so that is "washing its own face". In the current market and with an income of 49k what could I reasonable expect to get as a mortgage? Presuming that I have no existing debt to third parties. Three kids and I'm the sole income. Is it even going to be possible to get a mortgage. I am working in the same company for the last 9 years and am second to the top so job security is quite good. ( our company has grown by approx 300% in the last 4 years) Ideally we would like to get a mortgage of about 200k but have a deposit of 20 - 30K.

Thanks for all your input and advice

How much is o/s on your current mortgage? & what ages are you?

ElKavo

killers1 wrote: »

How much is o/s on your current mortgage? & what ages are you?

180k owed on original mortgage. Only got a 90% mortgage the first time and its a tracker. Mortgage in my name on original too. Now were married and we still have one income. Im 34 and herself is 32.

Thanks

killers1

ElKavo wrote: »

180k owed on original mortgage. Only got a 90% mortgage the first time and its a tracker. Mortgage in my name on original too. Now were married and we still have one income. Im 34 and herself is 32.

Thanks

Max you'd get would be approx €50k. The fact that your current repayment is on a tracker rate makes no difference to the banks stress testing rate of close to 7%. The fact that you've 1 income and 3 dependents mean you need a higher % of your income to cover living expenses with less available for a new mortgage. While it looks as though you'd qualify for a further mortgage of €50k, in reality I think you'd struggle to obtain any new finance.

ElKavo

killers1 wrote: »

Max you'd get would be approx €50k. The fact that your current repayment is on a tracker rate makes no difference to the banks stress testing rate of close to 7%. The fact that you've 1 income and 3 dependents mean you need a higher % of your income to cover living expenses with less available for a new mortgage. While it looks as though you'd qualify for a further mortgage of €50k, in reality I think you'd struggle to obtain any new finance.

Thanks killers. Well that sucks to be honest. Guess that a lot of people are in the same boat all the same. Ah well there's always the lotto lol.

killers1

ElKavo wrote: »

Thanks killers. Well that sucks to be honest. Guess that a lot of people are in the same boat all the same. Ah well there's always the lotto lol.

Sorry that I couldn't have had a more positive response for you.. Best of luck with the lotto!