2 second buyers advice

dublingirl83

hi,

I'm looking for some advice:
got married 3 months ago and we would love to be able to buy our own house together.

we both had bought houses before meeting each other (circa 2009)
one of the house would make 35.000ish profit if sold now the other would still be in negative equity of approx 20,00 approx (but has a tracker mortgage) we both bought for approx 300,000 each back in the day.(can't stay in them now as too small for expanding family and huge distance from work)

as we both are already paying large monthly mortgage repayments (never missed a payment) so are struggling to save more to reach the20% required for 2nd time buyers- for example for another house costing apprx 300,000 we need 60,000
we have approx 20,000 saved



do banks take into consideration that you have shown you can make the repayments required without issues/- proven track record x 9 yrs.
or will the lack of appropriate deposit be a deal breaker for them.

i assume when applying for the new mortgage the negative equity amount on one of the houses would have to be absorbed (probably out of the profit of the other house, therefore affecting amount borrowable ?

or would it be best to sell one now while its in profit and take the cash- or is it best to show i can save/ pay mortgage every month

would a mortgage advisor be best to look for advice?

as usual -family and friends keep giving us advice-"this is what you need to do etc'" but would rather talk to professional who can advise
also should mention age ( we are late 30's/ 40's)


any information greatly appreciated

bleary

Sell the one in positive equity, the 20% deposit doesn't apply if you are in negative equity. many banks have a tracker mover product where you can move the mortgage and pay tracker + 1%
From

https://www.centralbank.ie/financial-system/financial-stability/macro-prudential-policy/mortgage-measures/mortgage-measures---faq

The LTI limits apply to mortgages for borrowers in negative equity who are selling their home and wish to obtain a mortgage for a new property. The LTV limits do not apply. However, the usual lending standards of individual banks apply to these borrowers. In the case of joint mortgage applications, if one borrower is under a negative equity loan, the full application is considered to be a negative equity loan and so is in scope of the LTI limit.

Browney7

When you say negative equity, is the outstanding loan value still higher than the house value or do you mean the house is still worth less than what you paid for it?