Do Banks take into account rental income when assessing Mortgage amount they give?

Guideline

Registered User
Messages
15
Current property mortgage 190000
House is Valued at 210000
Mortgage payment amount per month 1300
I am Renting out this property for 1300 a month
Total income 103,000
Savings for deposit 50000
Currently saving 1150 a month
Paying 700 in rent.

My partner is a teacher earning 43000 and is new in the job and is not permanent but has been employed as a teacher continually for the last 8 years.

I am in permanent employment as a public servant

I am looking to keep the existing property as its not costing me that much and get another mortgage for 280000?

I believe banks will assess an application for a total mortgage of 470000

My question is would a bank take my rental income into account when assessing me for a mortgage and what is my chances of getting this amount?

Particularly interested in hearing from brokers obviously.

Thanks
 
Talk to a mortgage broker. I've a rental property and it's a major negative when applying for a mortgage. The rent on the house is €100 more per month than repayments.
To cut a long story short, all banks bar PTSB wouldn't even consider looking at me as the €100 above is way short of what is required. PTSB's rules are more relaxed; all I had to do was up the rent by €100.
 
Only if it is mortgage free, then they will take about 10 months rental income in to consideration. Location of property is also a factor.
 
Similar situation last year to you. Only figures were different. Was in negative equity and wanted to trade up. Got a mortgage with BOI and they did take into account potential rental income of apartment. The only thing I found is that they will give you so much times your gross salary and take away your current amount owed on mortgage and that's the max they will give you.
 
Looking at your figures and presuming you only have mortgage debt and going on what we were offered they will give you 4x 103k which is 412k less 190 owed on current mortgage. Now things may have changed since but that's the way it worked for us.
 
I'm in a similar situation. Looking to trade up but want to keep investment property. Below are my details. Steven or any other broker on here, do you think I'm in a good posiiton to be approved for a mortgage of 350k? (In my case, with AIB as I'm porting my tracker from my current mortgage to a new mortgage)

Age: 35.Base salary 73k. Bonus 4k. Private sector
Wife: 36 Base salary 56k. Public sector.
Two kids ( aged 1 and 3). No child care costs thanks to granny!

PPR: outstanding mortgage of 190k. On tracker of ECB + 0.6%.House worth 350k - 360k (looking to sell this house and upgrade. Would sell quickly. Looking to port this to a new mortgage)

Investment property: 2 bed apartment. mortgage outstanding 200k. Worth 160k. On a tracker mortgage. In very rental area in Dublin, rent covers mortgage each month with 100 euro to spare each month. Currently only charging 900 per month for rent, could up this to 1,100 handy enough.

Savings: 170k in cash. (Saving 2,500 euro each month)
Positive equity from sale of PPR: 170k approx
Total savings after sale: 340k approx

No car loans or credit loans

Looking to purchase a new house for 700k approx and hold onto investment property. So a new mortgage of 350k approx (made up of 190k on the portal tracker and the rest(160k) on a variable rate)

Thoughts on getting what I want from AIB? (I.e. Essentially increasing my mortgage with them from 190k currently to 350k)

Thanks
 
I'm in a similar situation. Looking to trade up but want to keep investment property. Below are my details. Steven or any other broker on here, do you think I'm in a good posiiton to be approved for a mortgage of 350k? (In my case, with AIB as I'm porting my tracker from my current mortgage to a new mortgage)

Age: 35.Base salary 73k. Bonus 4k. Private sector
Wife: 36 Base salary 56k. Public sector.
Two kids ( aged 1 and 3). No child care costs thanks to granny!

PPR: outstanding mortgage of 190k. On tracker of ECB + 0.6%.House worth 350k - 360k (looking to sell this house and upgrade. Would sell quickly. Looking to port this to a new mortgage)

Investment property: 2 bed apartment. mortgage outstanding 200k. Worth 160k. On a tracker mortgage. In very rental area in Dublin, rent covers mortgage each month with 100 euro to spare each month. Currently only charging 900 per month for rent, could up this to 1,100 handy enough.

Savings: 170k in cash. (Saving 2,500 euro each month)
Positive equity from sale of PPR: 170k approx
Total savings after sale: 340k approx

No car loans or credit loans

Looking to purchase a new house for 700k approx and hold onto investment property. So a new mortgage of 350k approx (made up of 190k on the portal tracker and the rest(160k) on a variable rate)

Thoughts on getting what I want from AIB? (I.e. Essentially increasing my mortgage with them from 190k currently to 350k)

Thanks

Anyone any thoughts?
 
The investment property figures will preclude you from being eligible for a mortgage.
As you've cash that'll cover the NE you're provably best selling it.
 
Back
Top