chances of second mortgage.. advice needed

lbyrne121

I was wondering if anyone could give any advice.. I was wondering what are my chances of getting a second mortgage ? I have an apartment and it is too small (2 beds) and to buy somewhere bigger. The mortgage is currently 195K (tracker mortgage) and property is approx 90-95K in negative equity, I don’t want to sell the property;

Income: 40K and partner 40K
Savings: 100K
Savings per month; 2,700
No loans, credit card debt etc..


My question is with the above details what is the chance of getting a second mortgage, the house costs approx 240K?

Any advice is greatly appreciated.

Trish56

OP, you should have no problem in getting a mortgage based on the information supplied and I can throw the figures into a calculator for you to confirm however I would need to know your ages, martial status how many dependents, what your tracker rate is and the monthly repayments on your mortgage and if you pay childcare how much per month.

lbyrne121 wrote: »

I was wondering if anyone could give any advice.. I was wondering what are my chances of getting a second mortgage ? I have an apartment and it is too small (2 beds) and to buy somewhere bigger. The mortgage is currently 195K (tracker mortgage) and property is approx 90-95K in negative equity, I don’t want to sell the property;

Income: 40K and partner 40K
Savings: 100K
Savings per month; 2,700
No loans, credit card debt etc..


My question is with the above details what is the chance of getting a second mortgage, the house costs approx 240K?

Any advice is greatly appreciated.

lbyrne121

Trish56 wrote: »

OP, you should have no problem in getting a mortgage based on the information supplied and I can throw the figures into a calculator for you to confirm however I would need to know your ages, martial status how many dependents, what your tracker rate is and the monthly repayments on your mortgage and if you pay childcare how much per month.

I am 33 and my partner is 35
We have no dependants
I am currently on tracker 2.25% +0.05% ecb= 2.3%- Monthly repayments are 730

Thank you!

Avatar MIA

By my calculations, assuming they used all of the €100k savings they'd still be €15k short of approval. And that's assuming they are allowed 4 times their max salary and not the 3.5 as recommended by the central bank.

Trish56

Yes you qualify for a mortgage up to 80% of the purchase price of 240k = 192k. Not sure how much of the 100k savings you wish to use so I done calculations on 80% loan to value. Deposit would be 48k plus legal and stamp duty of approx. 5k will leave you with 47k to furnish. Variable interest rate would be from 3.45%.
I assumed the apartment is outside of Dublin and rental income would be circa €650 per month.

Hope the above helps
Trish56

lbyrne121 wrote: »

I am 33 and my partner is 35
We have no dependants
I am currently on tracker 2.25% +0.05% ecb= 2.3%- Monthly repayments are 730

Thank you!

Avatar MIA

Trish56 wrote: »

Yes you qualify for a mortgage up to 80% of the purchase price of 240k = 192k. Not sure how much of the 100k savings you wish to use so I done calculations on 80% loan to value. Deposit would be 48k plus legal and stamp duty of approx. 5k will leave you with 47k to furnish. Variable interest rate would be from 3.45%.
I assumed the apartment is outside of Dublin and rental income would be circa €650 per month.

Hope the above helps
Trish56

Are you taking their existing/remaining mortgage commitment into account?

Trish56

Avatar MIA, They are earning 80k and 3.5 times income is 280k and they are only looking for 80% = 192k or less depending how much of the 100k they wish to use as a deposit. Not sure where you are getting your calculations from however I am 100% definite that my calculations are correct as they have been checked with lender's calculator.

Avatar MIA wrote: »

By my calculations, assuming they used all of the €100k savings they'd still be €15k short of approval. And that's assuming they are allowed 4 times their max salary and not the 3.5 as recommended by the central bank.

Avatar MIA

Trish56 wrote: »

Avatar MIA, They are earning 80k and 3.5 times income is 280k and they are only looking for 80% = 192k or less depending how much of the 100k they wish to use as a deposit. Not sure where you are getting your calculations from however I am 100% definite that my calculations are correct as they have been checked with lender's calculator.

They have an existing mortgage of €195k, which they want to keep.

They have €100k to reduce mortgage commitment.

So, from their (€80k * 3.5) €280k limit plus €100 cash they would be €55k short.

€195+€240-€380

Trish56

Yes - Loan to Value does not apply under the new Central Bank Regulations in this case where the existing property is in negative equity.

Avatar MIA wrote: »

Are you taking their existing/remaining mortgage commitment into account?

Avatar MIA

Trish56 wrote: »

Yes - Loan to Value does not apply under the new Central Bank Regulations in this case where the existing property is in negative equity.

You think a bank is going to lend them €140k when they already have €195k of a mortgage(which they are keeping)?

Trish56

Yes I do know for definite that a bank is going to lend them up to 192k subject to their normal terms and conditions when they already have a mortgage of 195k o/s on the property they are retaining and renting out. Loan to Income only applies to the home loan portion which in this case is 192k.
I have processed many similar mortgages in 2014 and 2015 so am 100% definite of what I am talking about.

Avatar MIA wrote: »

You think a bank is going to lend them €140k when they already have €195k of a mortgage(which they are keeping)?

lbyrne121

Trish56 wrote: »

Yes I do know for definite that a bank is going to lend them up to 192k subject to their normal terms and conditions when they already have a mortgage of 195k o/s on the property they are retaining and renting out. Loan to Income only applies to the home loan portion which in this case is 192k.
I have processed many similar mortgages in 2014 and 2015 so am 100% definite of what I am talking about.

Thank you very much for you advice.. I am going to a broker during the week but wanted to know if i should expect a laugh out of the office or would they would even consider putting in an application..

Avatar MIA

Trish56 wrote: »

Yes I do know for definite that a bank is going to lend them up to 192k subject to their normal terms and conditions when they already have a mortgage of 195k o/s on the property they are retaining and renting out. Loan to Income only applies to the home loan portion which in this case is 192k.
I have processed many similar mortgages in 2014 and 2015 so am 100% definite of what I am talking about.

At the very least you're assuming the other property is being rented.

OP,

Best of luck.

Trish56

Avatar MIA,
Yes I did assume that the existing property will be rented and would think this is highly probable since there is a huge shortfall of rental properties around the country. Lenders have experience in this type of lending and are also aware of the rental values around the country.

Avatar MIA wrote: »

At the very least you're assuming the other property is being rented.

OP,

Best of luck.

Trish56

Best of luck OP, you should have no problem.

lbyrne121 wrote: »

Thank you very much for you advice.. I am going to a broker during the week but wanted to know if i should expect a laugh out of the office or would they would even consider putting in an application..

mark316

Hey just came across this post and also looking for advice
I'm 31 partner 34
We have 1 dependent but will have 2 soon but no childcare costs
We have tracker mortgage 2.3% and have 265k remaining house worth 200 max don't want to sell
Income 80k combined
Savings 110k
No other loans or debts

What would chances of another mortgage for second property?