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Mortgage Deposit Question

  • 12-04-2021 10:24pm
    #1
    egg102530
    Registered Users, Registered Users 2 Posts: 30 ✭


    Would really appreciate thoughts on this one.

    I originally purchased my current property (small house) as a non resident landlord and due to rules at the time had to put in a considerable deposit and pay quite a high interest rate. I am now back in Ireland, living at the property and recently completed a remortgage process during which I released some of the equity of the property as a top up mortgage. My new LTV is 55% and the more favourable interest rate means my monthly mortgage payment is pretty much exactly the same but I have a bit of cash released from the property.

    I am now considering buying a bigger family home and keeping the current property as a rental. I would like to use some of the equity released funds to complement my deposit for the new property. BOI have approved in principle the new mortgage for me but say I cannot use these extra funds from equity release as part of new property (BOI are not involved in existing mortgage at all). I also have approval in principle from KBC who have not specifically stated any restrictions in relation to use of the additional funds however I am concerned that they may highlight this later in the process.

    Does anyone know if this is typically an issue with banks here and is it a regulatory requirement or down to bank discretion. TBH, I didn't originally do the equity release with intention of using it for a new property but now that I have it I would like to go this route as if available for use it would just about save me from having to sell current property.
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