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  • 20-08-2018 12:38pm
    #1
    clones1980
    Registered Users Posts: 308 ✭✭


    Hi all.

    I wish to trade up in the next year or two and would like some advice.
    I currently part own a house with my sister bought approximately 6 years ago. There is currently €91000 approximately owed on this house with a tracker mortgage. It is in negative equity.

    I applied for a mortgage 5 years ago to purchase a second house for myself but the banks refused as they felt if my sister lost her job I would not be able to pay for both.

    I subsequently took out two credit union loans and on top of my savings bought a second house in the same estate as the first one. The house cost €27,000 and I put approximately €30,000 into refurbishing it. I have paid it off fully so own it outright.

    I would love to trade up but am wondering if banks will still refuse due to fact I still part own first house with my sister.

    I earn approximately €40,000 a year.

    What options would be available to me?


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    #2
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    What you can borrow will be reduced by the amount you owe on the other property. You'll also need to meet the affordability requirements of both mortgages but some of the rental income (if any) will be taken into account by some banks. Basically you need to speak to a bank/broker to know for sure.


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    #3
    April 73
    Registered Users Posts: 846 ✭✭✭April 73


    How much negative equity is left? After 6 years paying down the mortgage & with price rises over the last few years it shouldn’t be worth too far off what remains of the mortgage.
    Does your sister live there or could she buy you out?


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    #4
    clones1980
    Registered Users Posts: 308 ✭✭clones1980


    April 73 wrote: »
    How much negative equity is left? After 6 years paying down the mortgage & with price rises over the last few years it shouldn’t be worth too far off what remains of the mortgage.
    Does your sister live there or could she buy you out?

    Id say its worth about €70g so at this stage I would need to pay her money to get out of the mortgage but she is reluctant to do that as she thinks she would lose the tracker rate.

    My plan would be to sell the second house which Id probably get around €60g for along with a deposit and a mortgage. I was hoping the banks might look favourably at the fact I have completely bought and paid off my second house in only a few years. Or would they prefer if I held onto the second house as its paid for and rent it.


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