Switching Mortgage

[cousin_borat]

Hi there,

Regular reader, havent posted many times.

I have a couple of questions about switching mortgages from one provider to another

Current Mortgage Situation
At the moment I have a joint mortgage with the ACC. Thjis was taken out for an investment property in Eastern Europe. This is doing fine and looking after itself.

At the moment I am paying interest only on the mortgage of 150k (Eur 570 per month). Currently the mortgage stands at around 140k since I paid some of the principle initially.

We used deeds of some of my parents land at home to guarantee this mortgage.

Plans for this year
I plan to purchase a house to renovate in Dublin 8/6 area later this year with my brother. We are looking at the range 800k - 1.0.

This has prompted me to think of changing mortgages to another provider.

Questions
By switching providers I would like to free up the deeds on my parents land and use another form of equity. Will this be possible?

Is my first time buyers mortgage gone seeing I invested in a property, albeit in a joint mortgage and am buying the new house with my brother who has a number of properties already?

Any recommendataions of which Mortgage providers currently offer the best value for a joint mortgage in the range 800 - 1.0? I have looked at other threads here and some good info for this so Questions 1 and 2 are more important.

Finally, does it make more sense for myself and brother to take a joint mortgage or for me to take a mortgage on 1/2 of the property?

Thanks and Happy New Year

 

[Sarah W]

To answer your last question first you can't take a mortgage on 1/2 a property - the mortgage is secured against the title deeds of the house and if you wish to buy the house jointly the mortgage will need to be in both names.

There is no one best lender for a particular loan amount - it will depend on your earnings, committed outgoings, deposit, etc and your requirements; fixed rate, tracker, interest only......?

If the existing ACC mortgage is secured on your parents land was the mortgage taken in the joint names of yourself and your parents? I'm unsure as to your reasoning for switching this mortgage?

As you own a property in Europe then you are no longer a FTB however you may qualify for FTB tax relief - you should check with the Revenue.

Sarah

www.rea.ie

 

[cousin_borat]

Thanks for the reply Sarah.

There is no one best lender for a particular loan amount - it will depend on your earnings, committed outgoings, deposit, etc and your requirements; fixed rate, tracker, interest only......?

Can commit to 1800-2000 per month. My brother would be adding at least the same. Add this to rental income of approx 1000 per month.

If the existing ACC mortgage is secured on your parents land was the mortgage taken in the joint names of yourself and your parents? I'm unsure as to your reasoning for switching this mortgage?

Since this was a foreign investment the only means I could put equity as security was parents land deeds. My reasoning now is I would like to not have my parents deeds secured on a mortgage anymore. If I was able to switch to another mortgage provider then the purchased house would be the security.

This is further complicated by the fact I would like to get a much larger amount than 150k from the new mortgage provider.

As you own a property in Europe then you are no longer a FTB however you may qualify for FTB tax relief - you should check with the Revenue.

I'll have a look at Oasis and ask around as well. I'm in the process of setting up my own business so perhaps the accountant can answer this as well.