Stupid Mortgage Question

OutCastLV

So, might be a very stupid question, but my landlord is thinking about leaving the renting gig and has 2 terraced properties next to each other. Now he has offered me to sell the house for a very acceptable price, my question is Would it be possible to get a single mortgage for both properties, the idea is joining the houses together into one big house might be a crazy/stupid idea but the location is good and if that would be even possible under single mortgage? Simply put getting 2 properties under 1 mortgage? possible or just a stupid idea?

Peregrinus

https://www.boards.ie/discussion/2058276292/stupid-mortgage-question

Don't see any reason why you can't get a loan secured on two (or or indeed more) properties. The real issue will be your plans to unite the two properties into one; the bank will need to be happy that, after you have done this, the combined property will still be adequate security for the amount of your loan.

3DataModem

I would not approach the bank with a "knock both properties into one" idea but with a "live in both" idea from a mortgage application perspective, if you can afford it.

You could suggest you are going to live in one and rent the other, but that will affect the mortgage criteria and rate significantly, it will all be treated as a BTL. The bank won't want separate mortgages on each property as it is in their interest to have a single debt with two bits of collateral to call upon.

Treat the combining the properties is a separate issue for a later date (i.e. a date after you have drawn down the mortgage 😀 )

Peregrinus

https://www.boards.ie/discussion/comment/120012976#Comment_120012976

Presumably the amount the OP needs to borrow is determined not just by the cost of acquiring the two properties but also by the cost of the work he wants to do to turn them into a single property. That will probably require him to come clean with the bank about his plans.

There's also the issue that, if he is only buying one property as a residence, he is buying the other as a commercial or investment property, and that will affect the amount the bank is willing to lend. Being upfront about buying both properties with a view to turning them into a single residence is likely to maximise the amount the bank is willing to lend. (Of course, it'll still have to be not more than is appropriate to the value of the security offered, and not more than is appropriate to the borrower's earnings/ability to service the loan out of income.)

There's no fundamental problem here. The bank doesn't care whether turning the two properties into one is a good idea or a bad idea; they just care about (a) how much they lend, (b) the value of the security they are offered in return and (c) the borrower's ability to service the loan.

Bank of Ireland: Megan

https://www.boards.ie/discussion/2058276292/stupid-mortgage-question

Good morning,

Thanks for getting in touch with us here.

For the best mortgage advice, please contact our mortgage specialists on 016113333. My colleagues will be happy to help. They are available from 9am-5pm Monday-Friday. You can also organise a branch appointment through this link below.

Can I arrange a Branch appointment online? - Bank of Ireland Group Website

Thanks, Megan

OutCastLV

Big Thanks for the quick replies!

Glad to hear that there shouldn't be a problem, in regards to other things i can do everything up myself slowly bit by bit as i have people in different trades that are willing to give me a hand, and to join the houses its literally just one double door in wall and the house is joined.

Either way thanks everyone !

thebiglad

I love Boards, on the Richer Sounds thread you cannot offer advice on a TV - only RS can reply but on the BOI thread we can give mortgage advice 😉