Chances of getting a mortgage?

J

jm11

Guest
I currently earn €46K and own a site in an area where same-sized ones are being sold for €160K without planning permission. However I currently have personal debt amounting to €50K which I'm planning to have reduced to €40K by this time next year. I've spotted a property that I'm very interested in which costs €250K and I was wondering whether a bank would give me a mortgage and add on my personal debt to it, considering I own an asset with the value mentioned above and therefore give me a mortgage totally €300K.

Any ideas? Should I wait first to reduce my personal debt or should I try my luck in getting a mortgage? I have very little expenses so could easily afford the monthly payments on a €300K mortgage.
 
If the site is worth 160K why dont you sell it, pay off the 50K debt, and get a mortgage for the balance needed.
 
Would prefer to keep the site as will probably apply for planning permission on it in the future which would increase it's value two-fold and 4-fold if I built a house on it. So it would be more prudent to keep it I think.
 
Why don't you build house on site, clear loan into this mortgage aswell, make life more fun and affordable. Depending where site is, when finnished, house could be worth fairly nice price,
 
No lender will advance more than the value/purchase price of the property and with unsecured debts at €50k (or €40k) I doubt you'd get a mortgage of any size. I agree with the others - either sell the site, repay the debt or look to incorporate the debt into a mortgage to build on the site. With no debt you could borrow up to €240,000 on an income of €46,000 (assuming a 35 yr term and room rental).

Sarah

www.rea.ie
 
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