Remortgage / Trading Up Advice

I am seeking advice regarding my mortgage. I have a 35 year mortgage with AIB, balance is 248,000. I have been paying this mortgage for 18 months, and 4 months ago I decided to avail of 12 months of interest only repayments due to the birth of my first child.

My property is currently worth approx 380,000 therefore I have approx 130,000 equity. I am now seeking to trade up from an apartment to a house. I would also like to consolidate other loans.

My gross salary P/A is 34,000. I have a permanent position as a Financial Analyst. I also earn 20,000 P/A in rental income. This rental income is paid into my bank account weekly so there is a trail on my bank statements. Does the bank take this rental income into account?

My father is on my current mortgage with me. He has an annual salary of approx 150,000.

If I refinance, my father will be on the mortgage with me again. I would also like my partner to be on it too. She is working part-time due to the birth of our first child. Her annual salary is 15,000 P/A

Outstanding loans are as follows:

Bank Loan 19,000
Car Finance 2,600
Credit Union Loan 2,000

Please advise me on how much I could borrow based on the information provided.

Properties i am looking at, are at around the 450k range. Plus 24k to clear loans. I would also like the remortage to include approx 30k to pay for my wedding!!

Based on a house costing €450,000 (plus Stamp, loans and wedding) you'd need almost the maximum of €414,000 or 92% of the purchase price (€407,350 excluding selling costs and solicitor fees/outlays to be precise). Your father would most definitely have to go on the mortgage to justify that level of borrowing. Where is the €20,000 rental income coming from? If it's outside Ireland lenders won't take it into account.

Given that you are only managing a €248,000 mortgage on interest only basis and the level of unsecured debt you have amassed in 18 months is taking on another €150,000 really a good idea?

Sarah

www.rea.ie

The € 20,000 p/a rental income comes from my current property in Dublin. I rent out two rooms and I am currently staying in my partner's family home.

This what I would like to do if possible. Maybe my original expectations were too high.

90% Equity Release 342,000
Less AIB Mortgage Balance -248,000
94,000
Less short-term debts -23,000
71,000


71,000 towards new Property

Second Mortgage based on :


My Salary 34,000
Rental income on current property 20,000
Partner Salary working part-time 15,000
69,000



Father a guarantor if required. Salary 150-200k. He is a GP so im not 100% sure of his annual earnings.

Based on these details would I not get a second mortgage for approx € 330,000. Plus the 71,000, I could look at property at the € 400,000 range?

Please let me know if the above would be possible.

You mean you want to keep the existing property, remortgage it to clear your debts and provide a deposit for (I presume) a brand new property with no Stamp Duty? So total debt of of €672,000 on PAYE income of €49,000 and rental income of €20,000. 8.5 times total income assuming 100% tenancy....

As I said before your father's income (depending on his level of debt) will justify your borrowing level pretty much irrespective of your own incomes however it's debatable whether this is a prudent decision.

Sarah

www.rea.ie