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Question on second mortgage

  • 28-08-2022 6:12pm
    Registered Users Posts: 28


    A. I already have one mortgage using first time buyer

    B. It's my understanding that I can apply for a second mortgage with a 20% deposit with three major conditions

    1. I satisfy all of the usual requirements for getting a mortgage (Income multiplier, in a job for more than X months etc)
    2. I move into the new property & rent out the first one
    3. The value of my second home has to be more than the value of my first e.g. My first property was 200k, my second will need to be >200k

    Do I understand this correctly?

    Thanks in advance for any help,



  • Registered Users Posts: 402 ✭✭Kurooi

    1. Yes
    2. Yes, though you can take a mortgage out for an investment property too and have it the other way around (not move over).
    3. Cannot confirm, I have never heard of this condition. I traded up (keeping my old as investment) and there wasn't a mention of this requirement.

    Some important points:

    -Banks generally take longer to get this approval over to you. And it's likely they won't want to take you on.

    -You can still be approved for LTV or LTI exemptions for your second mortgage. They're of course never guaranteed.

    -They may prefer to see a LTV less than 80% on your existing property. It's a very good idea to get your home valued and as high as possible it will make your application look a lot less risky.