Q: Can I borrow money on my 2nd property to pay for renovations in primary residence?

M

macy10

Registered User
Messages
16
hi looking for advice here.

We bought a 2nd home (now out primary home) last year, a doer upper 70s bungalow and absolutely maxed ourselves out buying it. It's a variable rate mortgage.

Fortunately we could keep our original home which we have rented out. It's on a tracker mortgage. Rent is covering mortgage with a surplus.

So question is: Can I borrow money against rented property in order to do up our primary 70s home?

Thanks
 
I don't see how anyone can answer your question with so little information.
You have a new mortgage, you say your maxed out, and you want to borrow against your original home.. Is this mortgage free??
Doesn't sound good.
 
LS400 said:
I don't see how anyone can answer your question with so little information.
You have a new mortgage, you say your maxed out, and you want to borrow against your original home.. Is this mortgage free??
Doesn't sound good.
Click to expand...


Sorry! Rented house has a balance of 230k and is worth 330-350k. So could we approach bank to borrow more on it? Rent here covers mortgage comfortably with surplus.

Our primary home-yes we maxes out to afford the purchase of it meaning we've no savings to do it up. I enquired with lender on this house about getting extra money but we'd need to have savings (that'd take us a few years to get back up to)

That clearer?...
 
+1,
Based on above, if you were to succeed, you should write to " ripleys believe it or not".

I considered my self to be in a great position recently to source a small mortgage, it was ridiculous the hoops we had to jump through.
I personally believe the criteria has swung too far the other way, they have gone from handing out loans without any sense of responsibility, to making it near impossible to obtain a mortgage these days.
 
Hi Macy

I don't understand why you kept your original home when you were buying a doer upper without the cash to do the doing upping.

You should have sought to transfer the tracker to your new home. It's too late for that now, so the right thing to do now, is to sell your former home. You will have €100k cash to do the work without further borrowing.

Brendan
 
Thanks Brendan.

We couldn't sell our original home at the time as it had pyrite and was unsaleable. Ideally we'd have sold and used profit to do this home up.

So now that we have 2nd property that's making us money I'm wondering if we can borrow against it to do up our home...
 
macy10 said:
hi looking for advice here.

We bought a 2nd home (now out primary home) last year, a doer upper 70s bungalow and absolutely maxed ourselves out buying it. It's a variable rate mortgage.

Fortunately we could keep our original home which we have rented out. It's on a tracker mortgage. Rent is covering mortgage with a surplus.

So question is: Can I borrow money against rented property in order to do up our primary 70s home?

Thanks
Click to expand...

Income values mortgages would help clarify.
 
Joe_90 said:
Income values mortgages would help clarify.
Click to expand...

And if she'd also tell us how much she wants to borrow and for what it would be helpful.

What's also not clear is she said she had wanted to sell, but if it's ok now, she can sell now, otherwise it's certainly not worth what she's saying.
 
macy10 said:
We bought a 2nd home (now out primary home) last year, a doer upper 70s bungalow and absolutely maxed ourselves out buying it. It's a variable rate mortgage.



Thanks
Click to expand...

Why did you buy a second home in poor condition and max yourself out in the process? You must have known or you should have known that you would have great difficulty securing the funds to renovate it. With all the CB restrictions its doubtful they will lend you the money anytime soon. Has the pyrite issue now been resolved in your old home? If it is, you best bet is put it on the market and use the available proceeds to renovate your present home.
 
You must log in or register to reply here.
Back
Top