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Loan-to-income limit (LTI)

  • 27-06-2022 1:10pm
    Registered Users Posts: 29 Henry Ngo

    Hi everyone,

    I know that there is a general limit of 3.5 times gross annual income for all new mortgages to buy a house. I want to ask that we can mortgage to buy 2 house and borrow up to 3.5 times income for every house?



  • Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 63,115 Mod ✭✭✭✭ L1011

    A second house (at the same time) would not be a PPR mortgage and have entirely different rules.

  • Registered Users Posts: 2,079 ✭✭✭ XsApollo

    2 houses at the same time?

    not possible, you can only have one PPR, presuming one of them would have to be a buy to let , banks have different rules for buy to let mortgages.

    or already have one house mortgaged and you are buying another?

    presuming you can afford a second mortgage then the second one will be 3.5 limit yes, both mortgages don’t come under the 3.5 limit together.

    there are rules and stuff about buying a second house, you can only have one PPR so one of them would be classed as a buy to let, bigger deposit for the second house and so on.

    I stand to be corrected on the above , but that’s how I remember it anyway.

  • Registered Users Posts: 19,671 ✭✭✭✭ ELM327

    For a BTL you need minimum 25% deposit normally to start with

  • Registered Users Posts: 29 Henry Ngo

    2 houses are not a same time. The 2nd house may be bought after the 1st house about a few of years.

    For examples, can I mortgage 60% for the 1st house (3.5 times income) and after 2 years, I continue to mortgage 60% for the 2nd house (also 3.5 times income)?. I still mortgage 55% for the 1st house (have just paid 5%).


  • Registered Users Posts: 691 ✭✭✭ JimmyMW

    I dont believe so, they will take into consideration your current outstanding balance and take this out of the 3.5 your income, there is no way one could afford 7 x income anyway so you couldn't meet the stress tests id imagine

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  • Registered Users Posts: 355 ✭✭ Kurooi

    In theory yes, I did that. Bought a starter, traded up, kept the old one. It's classed as an investment I believe but there is no requirement to let it out. Banks are suprisingly chill so long as you keep repayments up.

    You can buy a house, then apply for another mortgage and buy another house. They have individual 3.5 LTI limits so you can in theory borrow 7 times your salary. Heck I even got an LTI exception on the second one so probably borrowed about 7.5 times. Points to note are :

    • when you're buying the second property you will need a 20% deposit
    • Banks will not grant this easily. the decision will depend on your income, spouse, professions, remaining LTV of your old house, size of deposit.
    • Get your first home revalued and submit that to the bank, you want that LTV to be as low as possible so the bank don't see your two properties as a risk.
    • Your best bet is to try with your current lender.
    • First time buyer mortgages are approved pretty much automatically, just have a job and a deposit, computer says Yes. Your second mortgage request is going to be scrutinized by humans for sure.

    I cannot stress enough how much you should not count of this second mortgage getting approved. But you can try your luck.