2nd mortgage to build?

K

keevo

Guest
We're hoping to buy a site to build a home and relocate west at the same time. We currently have approx €200k mortgage for 3 bed semi within commuting range of Dublin.

We earn €78k between us and have creche fees. If we move then one of us will hopefully telework, so we'll keep the bigger salary of €50k.
Can anyone guess how much we'd get for a 2nd mortgage?

Initally we had intending selling the current house and having a smaller mortgage, but advice has been to hold onto it as investment. What do you guys think?
 
For a rough guide you can try the [broken link removed], also many other calculators available through other banks/institutions. (not sure how well any can predict an amount given the specific details of the build in question - seem more to be aimed at FTB)

For accurate answers from some of the experts who visit here on AAM you may need to confirm if any other loans are current, any other savings etc etc.
 
Thanks, we have one personal loan of about €10k, savings due with ssia's worth €20k and that's about it.

From the mortgage calculators we'd get €16k...not going to get far with that!!

House is currently worth about €320k and outstanding mortgage is €198k.

Rental income would expect to be €800pm, which wouldn't fully cover mortgage, there'd be a shortfall of about €80 per month. This is taking the estate agents handling fee into account.
 
Given the potential from rental, the equity you already hold etc. I'd assume the calculators just can't deal with this complex a situation. Really are more aimed towards investment properties/first time buyers and not purchase of a new PPR conversion of PPR to investment.

Again, some of the regulars on AAM are from the mortgage area so should be able to give you some hard facts and figures on this.

Not trying to guide you either way, but a few questions you should probably consider.....
have you owned the current house over five years? (I'm guessing so with the mortgage down to 198k but worth considering for the SD clawbacks etc)
What will the shortfall in the mortgage be after the potential interest rate hikes? (note, might be worth considering the current drop in rental prices around dublin and looking at the potential impact of this too)
What will your finances be like should you fail to rent the property for an extended period?

What impact would a smaller mortgage on the new property have on you? (Quality of life, more disposable income, less stress etc)
Potential savings going for a smaller mortgage? (lower LTV so lower APR, less insurance cover needed, etc)

Just because you recieve advice on something doesn't mean you shouldn't question it yourself and ensure your perfectly happy with your decision.
 
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