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How much deposit?

  • 28-08-2017 10:58am
    #1
    Mandy1960
    Registered Users, Registered Users 2 Posts: 3 ✭


    Hi there. Me and my partner would like to purchase a new home together. He owns a house with his brother which is in negative equity by 20-30000 . My home is set to make a profit of 40000 and I also payed 33000 upfront for my home. I owe 15000 in other loans inc 3000 credit card. Our options is to sell my home, clear my debts and to take over the mortgage from my partner s brother and maybe invest into their house. Other option is for the boys to sell the house and we buy a new home together after selling mine. How much deposit do we need ? Is it 20 percent between us or 20 percent each. He has no extra money to do thisso it would be up to me to put up the cash. Sorry for the long winded post. I look forward to your response. Thanks in advance


Comments

  • #2
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    As second time buyers you can borrow 80% of the purchase price therefore you will need a deposit of 20% of the purchase price plus 1% stamp duty and legal fees. As both of you own property with one in negative equity it can be complicated as lenders will stress test both repayments and reduce rental income.

    You can't simply just take over your partners brothers mortgage and I would advise you to seek legal advice before making any decisions. You should also try and pay off your credit card debt as soon as possible.


  • #3
    Mandy1960
    Registered Users, Registered Users 2 Posts: 3 ✭Mandy1960


    Trish56 wrote: »
    As second time buyers you can borrow 80% of the purchase price therefore you will need a deposit of 20% of the purchase price plus 1% stamp duty and legal fees. As both of you own property with one in negative equity it can be complicated as lenders will stress test both repayments and reduce rental income.

    You can't simply just take over your partners brothers mortgage and I would advise you to seek legal advice before making any decisions. You should also try and pay off your credit card debt as soon as possible.

    Thanks for the response. What do u mean by reduce rental income? I will definitely be seeking advice on the matter.


  • #4
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    If you are receiving €900 rental income per month lenders will only take in a % of this, one lender will only take in 50%.

    Mandy1960 wrote: »
    Thanks for the response. What do u mean by reduce rental income? I will definitely be seeking advice on the matter.


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