2nd Mortgage - any hope?

[R196]

Hi,

My wife and I bought a house in 2006 – mortgage is currently €260,000, house is worth approx €160,000. we are now in the process of renting the house out as it is no longer suitable for our needs i.e travelling to and from work takes approx 2hours in total daily, child starting school 50km from house etc

We intend renting in another location, mortgage repayments are 900p/m, we will receive 650p/m rent and will be paying approx 800p/m to rent our new house. Total income for us is approx 60k…just wondering if anyone has an idea if there is a possibility of us obtaining a second mortgage of say 160k so we wouldnt be wasting money on rent in new location?

Thanks

 

[BoscoTalking]

you have to weight up your costs really as well as the mortgage. You would be topping up your existing mortgage, so to add another mortgage or rent into the mix would probably not be entertained. Your mortgage payments seem low for 260k suggesting to me that they are over a long time or could increase and what would you do then? the travel to work is an hour there and back - can you do some work from home or flex the hours to drive home in non-peak hours?

If both of you work it might we worth considering giving up one of the two jobs, staying where you are, losing childcare costs (why is kid traveling 50miles daily - its not exactly good for them to be so extended I would say so local would be better) gaining better family life.

of course if both salaries are relatively the same it would be difficult, I just think its not an option that many look at out of fear but we lost a job and financially we are not too much worse off, still can save, have no childcare and have better lives because simple things like cooking from scratch which is cheaper is done by the person working at home and family life time is exactly that.