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Buying a second home to live in?

  • 28-07-2023 11:32AM
    #1
    ElitesTeam
    Registered Users, Registered Users 2 Posts: 354 ✭✭


    Wonder how a mortgage would work if a couple buy a property together then break up.

    One party leave the house and wants to buy another while the other party lives in it till they can buy out(could be years). Party that's leaving would prefer to buy a cheap place rather than rent.

    Would a second mortgage using a bank AIP still be 3.5x income? or would it be highly reduced.



Comments

  • #2
    Q&A
    Registered Users, Registered Users 2 Posts: 586 ✭✭✭Q&A


    3.5x income is not the only limit banks will apply when assessing .

    A potential borrower will be assessed on their ability to repay any future mortgage. This will factor in their current income and existing commitments. The latter would include any pre-existing mortgages. Depending on the size and duration of the remaining mortgage that could materially reduce the amount of any new loan offer.

    Their marital status -if they are married - may also complicate getting loan approval.



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