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Buying a second house, mortgage advice

  • 01-02-2020 1:37am
    #1
    Registered Users Posts: 60 ✭✭ Murray13


    Hey there,
    I am looking for some advice on how to go about buying a second house in Ireland. I currently have a mortgage on a house with approx €145k to pay over 25 years.
    I am living and working abroad so the house is rented. I am fortunate enough to have a lump sum that I can put towards a second house in Ireland. I am wondering what my options are...
    I struggled to get the first mortgage as I had just moved back to Ireland at the time and I needed to be in a permanent job for at least a year. Since then I left that job and left Ireland again.
    I will return to Ireland next year and move back into the house we bought. I will be self employed running the family business. My wife will be working with a low base income but earning commission. I figure with the outstanding mortgage and our work situation it will be impossible to borrow for a second home....
    Currently the only option I see is to save until we can but the second house outright..
    Are there any other options that I am missing?
    Thanks in advance!


Comments

  • Registered Users Posts: 1,324 ✭✭✭ I see sheep


    Have you thought about just paying off a chunk of your current mortgage with the money?


  • Registered Users Posts: 60 ✭✭ Murray13


    Have you thought about just paying off a chunk of your current mortgage with the money?

    Yes, we are weighing up the pros and cons of that approach. We could clear our current mortgage with our savings. But it would leave us with money in the bank. And I think poor work circumstances will make it hard for us to get a mortgage in the next few years.

    The alternative would be to keep saving...


  • Registered Users Posts: 1,324 ✭✭✭ I see sheep


    Murray13 wrote: »
    Yes, we are weighing up the pros and cons of that approach. We could clear our current mortgage with our savings. But it would leave us with money in the bank. And I think poor work circumstances will make it hard for us to get a mortgage in the next few years.

    The alternative would be to keep saving...

    If I were you I'd take as much off the current mortgage as possible, there is a crash coming, you know it man, stay out til it happens.


  • Registered Users Posts: 17,907 ✭✭✭✭ ELM327


    There may not be a crash but there will be a correction.
    Property prices are not increasing at prior pace and I suggest in 12 months you'll be no worse off if you pause on making a decision.


  • Registered Users Posts: 2,240 ✭✭✭ garrettod


    Murray13 wrote: »
    .... And I think poor work circumstances will make it hard for us to get a mortgage in the next few years.

    Mind me asking what you do for a living, that you are concerned that there may be poor work circumstances ahead for the next few years?

    Even if your in one of the few industries or professions that are under pressure in Ireland, your skills may be transferable, or a little further education might help you migrate into a new career.

    No doubt about it, there are lots of jobs available in Ireland, but obviously, not all jobs are suited for all people etc.

    Thanks,

    G.



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