2 properties, new mortgage approval likely?

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Foodie1

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New member here loooking for advice on current situation. We have an apartment and house we currently live in which are both in negative equity. We expect to be at water level in the next 6-12 months with both of these. We wish to buy in better area and need advice as to whether we would realistically get another mortgage.

Salary Husband 75k Private employer
Salary wife 30k Public sevice
2 kids 625 Creche fees
No other loans. 35k in savings with chance of parents gifting 50k

Apartment worth 165k and 170k left on mortgage. Mortgage 1050 p/m and rental of 875 p/m with 100 p/m management fee cost to us. Up to date on all PRTB, tax etc. 4.5 variable

Current house worth 260k and 270k left on mortgage. Mortgage 1450 pm. 4.3% variable

Looking to buy house worth 400k. would get 20% deposit with Family help. Is it better to wait until a years time, sell both properties and start from there?

Thanks in advance
 
Foodie1 said:
New member here loooking for advice on current situation. We have an apartment and house we currently live in which are both in negative equity. We expect to be at water level in the next 6-12 months with both of these. We wish to buy in better area and need advice as to whether we would realistically get another mortgage.

Salary Husband 75k Private employer
Salary wife 30k Public sevice
2 kids 625 Creche fees
No other loans. 35k in savings with chance of parents gifting 50k

Apartment worth 165k and 170k left on mortgage. Mortgage 1050 p/m and rental of 875 p/m with 100 p/m management fee cost to us. Up to date on all PRTB, tax etc. 4.5 variable

Current house worth 260k and 270k left on mortgage. Mortgage 1450 pm. 4.3% variable

Looking to buy house worth 400k. would get 20% deposit with Family help. Is it better to wait until a years time, sell both properties and start from there?

Thanks in advance
Click to expand...
Should have added, Apartment and house have both 25 yrs left on mortgage
 
Going by the brief information provided you should have an excellent chance of getting a new mortgage. Why wait 12 months? You are both buying and selling so any movement in the market will be evened out!! Have you raised the proposal with one of your current mortgage providers?
 
Thanks Brendan, apologies should have said could we get a mortgage now even if we don't sell other two. We have to wait to clear as still in negative equity. We have seen something we want to buy but thought bank wouldn't look at us just yet.

Also should we sell both when market in our favour or keep apartment as good tenant? I presume this will lessen the amount the bank will give us if that makes sense
 
Hi OP, correct me if I read your figures wrong but you are holding down mortgages of 440,000 on property worth 420,000 € ? With that and the creche fees and the combined salary of 105K I don't think you have any chance. Your debt level is above mine and I have a higher combined income (and PS employees), no creche fees and equity of 345k across 3 properties, yet we could not get any mortgage when I went to the bank recently. We were 20 k shy of the new rules as it was.
Let me know what the Bank says as I am very interested if you can pull this off.
 
Thanks for replying. Will indeed let you know when I hear back but am guessing its a no go for now!
 
Most likely you won't get mortgage approval. Even without the two properties, under the new CB mortgage lending rules the max you would be approved for is 367,500 (based on 3.5 times joint income).
Critically, if I were you I would sell the apartment NOW. That is a relatively high interest rate and I would negotiate what should be a relatively (if any) repayment of negative equity. You won't be paying the mgmt fee of 100/month which can go towards that.
This will put you in a stronger position and if property prices fall, you haven't lost out on further negative equity on the apartment and if prices rise, you can take advantage of that on your principle residence.
 
So the bank got back to us. Ballpart of 60k mortgage if we keep the 2 properties. Advised to see one and then we should do much better. Thanks for advice folks
 
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