Unusual mortgage question

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DG123

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I have an unusual mortgage question.

I own a property outright worth approx 330k. The mortgage has been paid off. Now I am looking for a new mortgage of approx 180k to buy property abroad. However, I am a writer, and I do not have a regular salary.

I have a regular income of 1k pcm for renting the property out. The mortgage repayments would be less than 1k a month.

Will my lack of a regular salary prevent me from getting a mortgage?

All and any advice appreciated - let me know if you need more info.

Thanks
 
Lenders work on affordabilty and will look at all taxable income derived in Ireland. The €1000 per month - is that from letting the house here or the one abroad? If it's the latter the lenders will not take it into account. What sort of income are you showing on your Revenue balancing statements? Is it a single or joint application?

Sarah

www.rea.ie
 
Sorry I wasn't fully clear.

The rental income is from the Irish 330k property which is owned outright. There will be rental income from the foreign property, but I expect the bank won't give too much weight to that.

My question essentially is that while I will "lose points" in the bank's eyes for having irregular income, will I "gain" enough by having the asset of a 330k property which is owned outright?
 
How much will the foreign property be costing - i.e. what would the loan to value ratio be if you are borrowing €180K? Do you live in the €330K property or do you have your own PPR (mortgaged or not)?
 
Yes pcm = per calendar month

All fees have been paid in advance for this year. Tax is not an issue as I am living abroad, and not earning in Ireland.
 
I am not living in Ireland, so the 330k property is fully rented out. What is 'PPR'?
 
Sorry, I am borrowing the full value (180k) of the foreign property, but securing it against my Irish property (330k) which makes an LTV of 57%
 
PPR = Principal Private Residence or simply your home.

DG123 said:
Sorry, I am borrowing the full value (180k) of the foreign property, but securing it against my Irish property (330k) which makes an LTV of 57%
Click to expand...
No it doesn't - if you borrow €180K to buy a property costing €180K then the LTV is 100%.
 
ClubMan said:
PPR = Principal Private Residence or simply your home.


No it doesn't - if you borrow €180K to buy a property costing €180K then the LTV is 100%.
Click to expand...

Does the LTV not relate to the property the loan is secured on?
 
Yes it does. So the only income in Ireland is the rent of €1000 - is that right?

Bank of Scotland may be able to help. At (say) 4.75% the interest only payments on €180,000 would be €712 per month. As long as the rent is covered by 1.4 x the mortgage (€712 x 1.4 = €997) it is within criteria. Of course they would want to see that that is not your only source of income but with good bank statements (and saving?) you should have a case.

Sarah

www.rea.ie
 
Thanks to all the posters for the help.

It sounds a lot more promising than the advice I was getting from friends. I will give my bank a call, and Bank of Scotland.
 
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