Using first home as deposit for mortgage

zuper14

A family member left a house to me worth 150k which I spent 20k renovating but I now need to buy closer to work and city but iv no money for a deposit!!!:( can I use current as collateral to get mortgage for around 300k I earn 45k and my partner 30k? selling current property isnt an option as its to stay in family but can be rented out prob at around 700 per month....

euroboom13

zuper14 wrote: »

A family member left a house to me worth 150k which I spent 20k renovating but I now need to buy closer to work and city but iv no money for a deposit!!!:( can I use current as collateral to get mortgage for around 300k I earn 45k and my partner 30k? selling current property isnt an option as its to stay in family but can be rented out prob at around 700 per month....

A lot of people need a house and are renting, why doesn't this suit you?


If the banks value both properties at what you have quoted, and are willing to loan over two properties you may have a chance.

They would be giving you say 220k for new and 80k for the old property, but your salaries' would barely make the grade for 300k and rental income isn`t guaranteed .
Just my opinion!

zuper14

Theres no mortgage on first house and iv no loans or credit cards but 20k I had saved went on renovating and furnishing house that was left to me it was a rash decision and I regret making it but hindsight is a great thing. Iv rented all my life so iv no issues with renting but at some stage I need a family home where im happy and within distance of work

euroboom13 wrote: »

A lot of people need a house and are renting, why doesn't this suit you?


If the banks value both properties at what you have quoted, and are willing to loan over two properties you may have a chance.

They would be giving you say 220k for new and 80k for the old property, but your salaries' would barely make the grade for 300k and rental income isn`t guaranteed .
Just my opinion!

euroboom13

Its the large mortgage that you don't need when starting a family .families can make a home anywhere but protecting a family against financial worries should be priority to all.

I have a bug with the "need a home" line cause most people use it as an excuse to buy overpriced property.

zuper14

euroboom13 wrote: »

Its the large mortgage that you don't need when starting a family .families can make a home anywhere but protecting a family against financial worries should be priority to all.

I have a bug with the "need a home" line cause most people use it as an excuse to buy overpriced property.

Not my intention to bug anyone and when I need advice on how best to care for my family il keep you mind, thanks for the post

zuper14

euroboom13 wrote: »

Its the large mortgage that you don't need when starting a family .families can make a home anywhere but protecting a family against financial worries should be priority to all.

I have a bug with the "need a home" line cause most people use it as an excuse to buy overpriced property.

Not my intention to bug anyone and when I need advice on how best to care for my family il keep you mind, thanks for the post

euroboom13

zuper14 wrote: »

Not my intention to bug anyone and when I need advice on how best to care for my family il keep you mind, thanks for the post

Your welcome ,I`m sure

(hit a nerve there, bit of truth hurts)

Markcheese

One thing , you said you can't sell the house you inherited ... Could a bank if your using it as collateral ?? If not they won't be interested in it as a deposit... But your rental receipts will count towards your income (as well as helping you build up a deposit quicker)

ulinbac

zuper14 wrote: »

A family member left a house to me worth 150k which I spent 20k renovating but I now need to buy closer to work and city but iv no money for a deposit!!!:( can I use current as collateral to get mortgage for around 300k I earn 45k and my partner 30k? selling current property isnt an option as its to stay in family but can be rented out prob at around 700 per month....

Hey OP,

Just so I can get my head around it. Are you only holding on to the house for sentimental reasons? If the answer is yes then sell it. Get a mortgage for 150kish and be comfortable. With a mortgage of 150k you can pay it off in less than 10 years

marathonic

You may have rented all your life but not all tenants are like you - how would you feel if a tenant was living in this newly-renovated house with sentimental attachments without paying rent for up to 18 months whilst thrashing the place. Being a landlord is not the easy money-machine a lot of tenants seem to think it is.

Trish56

zuper14 wrote: »

A family member left a house to me worth 150k which I spent 20k renovating but I now need to buy closer to work and city but iv no money for a deposit!!!:( can I use current as collateral to get mortgage for around 300k I earn 45k and my partner 30k? selling current property isnt an option as its to stay in family but can be rented out prob at around 700 per month....

Lenders would look at this proposal and you should qualify for a mortgage of 300k on joint income and rental income. Banks currently assess your application on your ability to pay so would be looking for evidence that you are currently saving approx. €1900 per month. This is what the stressed repayments would be on 300k at 6.50% over 30 years. If you are not showing this over the last 6/12 months you wont qualify for a mortgage.

I presume that you have to retain the existing property for a number of years so as to avoid inheritance tax.

zuper14

To be honest I hadn't even thought about inheritance tax as I was told that because the value of house is below 200k its not taxable but that advice may be wrong. We agreed as a family that home place would stay in family as long as possible and its not like im in bad need to sell it id just like to move closer to where my life is at the moment that's all, and it probably is to much to stretch to 300k but I used that figure as a maximum price. Thanks for feedback think I need to do a bit of homework before doing anything!:)