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Mortgage / Equity Release Query

  • 04-01-2020 11:03am
    #1
    Blub123
    Registered Users, Registered Users 2 Posts: 166 ✭✭


    Morning All, hope a great Christmas was had.
    This might be a very short thread as am unsure if such a product exists, tho a mate mentioned ICS may be an option.
    We are currently living in a property we are happy with however a house has just come on the market in our dream location that is going to auction at the end of the month. It requires some work to make it livable.
    As we didn't have an intention to move we have not being saving for a deposit therefore if we approach a bank would not qualify in the traditional sence.
    On our current property, value circa 420k, we have 105k mortgage.
    We would like to hold on to this property and rent it if at all possible as the rental income would be more than double the current mortgage payment.
    Is there any providers out there that would provide an equity release on the existing property which would allow us to satisfy the deposit rules on a traditional mortgage which I believe we would be able to obtain given our otherwise decent financial position.
    Hope this makes sense.
    Thanks all.


Comments

  • #2
    VanHalen
    Registered Users, Registered Users 2 Posts: 96 ✭✭VanHalen


    When you ran the numbers for renting your current property did you take into account that the rent would be classed as taxable income?


  • #3
    Blub123
    Registered Users, Registered Users 2 Posts: 166 ✭✭Blub123


    VanHalen wrote: »
    When you ran the numbers for renting your current property did you take into account that the rent would be classed as taxable income?
    Yes indeed. It would be a 2nd rented property as we have an apartment currently rented for the past 10 years so up to date on that side of the house. Thanks


  • #4
    phormium
    Registered Users, Registered Users 2 Posts: 3,395 ✭✭✭phormium


    Back in the boom what you would do there is cross securitise so bank would give you new mortgage which would have to be with your original lender and they would advance the full amount of the new property but both houses would be tied in as security. So in effect they would have a total debt again the total value of both which would be well below percentages allowed.

    However don't know if anyone does that anymore, for a straightforward extra loan on your own property the bank with the mortgage at present is the best bet if they are the ones giving you the new loan for the new property. Can't see another bank giving it to you without having the full deal.


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