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Buying a Second Home

  • 01-01-2022 10:30pm
    Registered Users Posts: 4,816 ✭✭✭ c.p.w.g.w

    So as the title says...

    Myself & OH are looking at a new home in a nicer/quieter location...

    Our current situation

    House Value at time of purchase:€105,000

    Remaining Mortgage:€85,000

    Houses recently sold in my area/estate:€180-200,000

    Currently we have combined savings of €50,000

    We earn €74,000 combined annually...

    We are just thinking about the possibility of buying a second house and sell our current house when we get the second place... mainly trying to avoid being in a chain...also the council is a possibility to sell our current house too

    My question is what are our chances of securing a mortgage on a second property?

    Or even is a single mortgage on 2 properties a thing?


  • Registered Users Posts: 11,429 ✭✭✭✭ Geuze

    The quickest way to find out is to apply for AIP to several banks.

  • Registered Users Posts: 275 ✭✭ Kurooi

    I had this done, so it is possible, as an independent mortgage on a second house.

    Went out to an agent with the bank I already had a mortage with, it wasn't much fuss. I think the fact you owe quite little still and have 2 earners puts you in a good position stress that wherever you go. Do note, as a 2nd time buyer you need to have a 20% deposit, and the process will be a lot slower to 1st time buyers (I had to wait a few weeks for approval)

    I don't know what the chances are, but you're right to explore your options and you might as well be one of the few people who asked the question and got it.

  • Registered Users Posts: 1,084 ✭✭✭ Donie75

    Selling to the Council can be very slow. I did it 2-3 years ago and it took forever.

  • Registered Users Posts: 18,627 ✭✭✭✭ road_high

    Why not keep your current house and buy another one?

  • Registered Users Posts: 927 ✭✭✭ DubCount

    Higher interest rates on Buy2Let mortgages, potential future CGT liabilities, risks of non-paying tenants, significant ongoing administration, burden of tax compliance, regular government interventions adding additional tenant rights to the property, potential restriction on borrowing capacity for property to live in........ I'm sure there's more.

    Nobody wants to be a single property landlord in Ireland. Its madness.

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  • Registered Users Posts: 495 ✭✭ Q&A

    It's doable but will depend on the asking price.

    First thing is have you enough cash to meet the 20% requirement. Without this you can't buy and keep the first property. With 50k you're looking at a property worth €250k. Beyond this you will either need to save more or sell your existing property.

    That leaves a balance of €200k to be financed through credit. 3.5 times your income is about €259k. The problem for you is the fact you've got an existing mortgage of €85k. This will reduce what additional funds you can borrow.

    A lender may be willing to extend a full 3.5 times your income if you can show your existing property is a viable rental property. For this you would have to show that the expected rent would far exceed the mortgage repayments. They may also factor in a portion of the year the property may be empty. They may also stress interest rates for you. What are rents like in your area versus your monthly repayment?