Property as security for a mortgage

I'm trying to find information about using a property as collateral for a mortgage.

For info I would be a first time buyer, would have 15%-20% deposit and sufficient earnings for a house in the region of €300k-€400k. The property was gifted to me, and would be worth c.€50k - it is in poor condition. What impact might this property have on the terms of the mortgage? Could it be considered as part of a deposit? Would the same deposit be required but a lower interest rate due to additional security?


TIA

I ask BOI this question on the phone and their answer was that the property you buy would be collateral for the mortgage. He may help with you getting a mortgage as you could sell it if needed. Would it not be an idea to do said property up and sell it at a higher price so you could borrow less money?

Owning a derelict property will not affect your application for a mortgage in any way.

Agree with gar

Make life simple for yourself.

Sell the property and you will need to borrow less. That will probably get you a better rate.



Brendan

Thanks for the replies.

I agree that selling would be the most straight forward thing to do. However, the house was the family home of one of my grandparents so I do not want to sell.