I have an investment, but want to buy a home

From reading the above it appears I am outta luck. I have never owned a property but my wife has an existing mortgage. That place is in negative equity.

I take it we don't qualify for FTB limit?

As ye have a negative equity mortgage, the LTV rules do not apply to you.

If the rules of the particular lender allow them to give you a new mortgage, then they can do so.

Of course, you must stay within the 3.5 times loan to income rule.

Brendan

Thanks for the reply. The current apartment would not be sold though. The rent would cover the mortgage on it. Could that be a factor?

Then I'd imagine you would be seen as second time buyers subject to the LTV & LTI limits. So your total income & the amount of borrowings would have to be looked at. Difficult to say if you have a chance without more info.

You will have to provide all the information to get a meaningful answers

Brendan

Butter said:

Then I'd imagine you would be seen as second time buyers subject to the LTV & LTI limits. So your total income & the amount of borrowings would have to be looked at. Difficult to say if you have a chance without more info.

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I read the CBI rules and did not see any reference to "second time buyers" as it pertains to the NE exemption. Neither is there a specific reference to a requirement to sell the NE property. It would seem to me that it is a very broad exemption.

River said:

I read the CBI rules

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Hi River

I agree with your interpretation.

I have just checked with the CB, and the regulations have not actually been published yet, so until they are, we can't say for sure.

Brendan