2nd mortgage no deposit, but €120k equity in my home

[liger]

Hi,

Currently we live in a commuter town but due to changes in work It would be easier for me not to have to travel 80km to work, especially with long days all the time.

I was thinking of looking for a 2 bed 2 bath apt in dublin and having somewhere to stay when I need. I wouldn't mind renting the spare room to cut the cost.

My house is valued at about 220k. My mortgage is 100k. I don't have a way to get a 20% deposit but would a bank work with the equity in my current place?

I an reluctant to sit down with anyone in a branch as most of my experience with them have been trying to hassle you into an application as they can't do anything until an official application is in.

 

[dereko1969]

I don't think you have much hope of this. Bank would have to get security on your current home and they've been burnt too many times.
Why not just Airbnb or B&B it on the odd nights you need it?

 

[liger]

I don't think you have much hope of this. Bank would have to get security on your current home and they've been burnt too many times.
Why not just Airbnb or B&B it on the odd nights you need it?

I prefer to have my money not paying someone else's mortgage when I could be paying my own. Also I have or want to work short notice OT I don't want to be worried about nor having a place.

So the bank my mortgage is with might be the best option but does anybody have experience of this recently.

 

[44brendan]

So the bank my mortgage is with might be the best option

Definitely the only option! main issue will be your ability to pay both mortgages on a stressed basis. You need to approach your bank on this as it is the only way of getting a decision. Formal application is required as no staff member can give you an answer until the facts are presented to the underwriting dept.

 

[Sarenco]

Central Bank rules impose an LTV limit of 70% for non-PDH loans (with limited exceptions).

Don't forget that there are a lot of costs associated with maintaining two properties over and beyond the increased mortgage payments (LPT, OMC, etc.).

 

[liger]

I would say the repayments would be fine. Even with the stress test.

I didn't know about the 70%. Maybe they can reshape the mortgage to move equity from main residence to 2nd. I know the expenses add up quick. That's why I wouldn't have a problem letting out the second room.