This is a hypothetical question at the minute but could be reality for me in a couple of years. Myself and my girlfriend recently moved back to our parents to save for a house. We currently own an apartment which we have rented out, we could not sell it as it was in negative equity but had no problems renting it.
We are currently saving €2k a month and hope to have approx €50k saved by early 2012 to use as a deposit to buy a house. We have already spoken to banks and they have told us that it should not be a problem to get the second mortgage and we will get in the region of 3 times are combined salary.
My question is if we do buy a house and we were ever to have problems renting out the apartment (I am hoping this won’t happen) and default on the mortgage of the apartment how would this effect the mortgage on the new PPR?
The second mortgage will be with a seperate lender if this makes any difference.
We are currently saving €2k a month and hope to have approx €50k saved by early 2012 to use as a deposit to buy a house. We have already spoken to banks and they have told us that it should not be a problem to get the second mortgage and we will get in the region of 3 times are combined salary.
My question is if we do buy a house and we were ever to have problems renting out the apartment (I am hoping this won’t happen) and default on the mortgage of the apartment how would this effect the mortgage on the new PPR?
The second mortgage will be with a seperate lender if this makes any difference.