How to get mortgage €70, 000 on second property BTL?

nolanco

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Looking for advice on how to get mortgage 70, 000 euro on second property...11k still owed on family home with 345 euro per month...also credit union loan of 22k with payments of 215 per week or 860 per month...with earnings of 45k per year...wife has some casual earnings but cant show that...just finished paying of another loan that had payments of 385 per month...therefore could afford another loan ...2 kids.....not satisfiying bank of ireland's stipulations...also my mortgage is with danske bank who has left the irish market...so no go there...also have no savings to speak of since 215 per week going to credit union. ...2nd property will have an income of 10k plus "help"
 
Sorry but I can't see any lender who'll touch this. I'm figuring that your take-home pay is a little over €3,000 per month. Out of that you're paying over €1,200 month in existing loans, leaving around €1,800 per month to pay for a family of four. Any lenders I know would consider that you're over-extended already.
 
Thanks for reply LD...what if credit union agreed to restructure over 5 years...do you think this would get me any closer
 
You have no savings and you wish to purchase a second house? All banks require a deposit of some sort. Solicitors fees, stamp duty etc will cost in the region of €2000 and I would imagine the house for €70,000 will need some renovation to get it ready for the rental market. So you need to ask yourself how is all this going to be financed?

I think the days of 110% mortgages are well and truly over and rightly so.
 
That's a heck of a lot of money going to repay the credit union. And you say you've just finished another loan. Wouldn't you be much better off using that freed up 385€ to increase the montly repayments to the credit union and save yourself a lot of interest. What is the interest rate and term on the credit union loan?

Also it's a very bad sign that you have no savings.

What does 'help' mean in relation to rental income?
 
Thanks for reply LD...what if credit union agreed to restructure over 5 years...do you think this would get me any closer

No I don't. You have no savings to speak of. For an investment, banks will only go to around 75% lending. So you need to have a substantial deposit plus costs. You may have someone else in the background willing to front up the deposit plus costs, but that won't cut any ice with lenders. In general, lenders will accept gifts from third parties when one is buying a family home, but not if you're asking a bank to finance the purchase of an investment. You need to show that you have money to invest.

I'd follow Bronte's advice - use the €385 per month to accelerate your payments to the Credit Union loan. Then when it's gone, start saving €1,000+ per month. When you've saved up a suitable deposit plus costs, then you'll be in a position to borrow to invest if that's what you want to do.
 
The property may have an "income" of €10k a year but that isn't income. By the time you pay the mortgage, property tax, other associated costs and the tax bill you'll do well to make any profit. A property worth €70k that can generate a rental income of €10k would be unusual. Being a landlord is not an easy way to make money. This sounds like an "investment" idea c.2006.
Clearing your debts & getting rid of the interest charges sounds like a better plan.
 
This holiday home is in a group of similar houses which earn that kind of money just rented out maybe 6 months of the year...it needs a minimum amount of work which I do....but I understand that its maybe coming a little soon for me this deal....no savings because I was one of many self employed that got stiffed in the so called celtic tiger and am still paying of legacy debt...but on the bright side will be debt free in two years....maybe good advice thanks, on paying more to cu to end loan sooner. The house in Question is from a bankruptcy brought in England
 
This holiday home is in a group of similar houses which earn that kind of money just rented out maybe 6 months of the year...

The house in Question is from a bankruptcy brought in England

6 months holiday rental? What is the location. Are you in England.
 
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