Buying 2nd property but keeping family home

Currently have family home looking at moving up to bigger property.however keeping existing family home and rent out.we have small mortgage of €60k left.both incomes together at €46k and we have deposit of €20k.any ideas how the bank view us ??or with new criteria what would we be allow to borrow or not?we keeping family home as recent times a house in the street only sold €120k -our is not worth selling.

foxylady5160 said:

Currently have family home looking at moving up to bigger property.however keeping existing family home and rent out.we have small mortgage of €60k left.both incomes together at €46k and we have deposit of €20k.any ideas how the bank view us ??or with new criteria what would we be allow to borrow or not?we keeping family home as recent times a house in the street only sold €120k -our is not worth selling.

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Is the family home on a tracker. If so the banks will want to get you off it. They will stress test ye on both house's to see if you can afford them.

As it happens our mortgage is payments we overpay by €170 a month as it stands since day1.also we bought land outright a number of years ago as we had ssias at the time. We probably looking at a remortgage to keep what we have and to buy bigger family home.ivr no clue what to expect what lending criteria etc.we don't have tracker rate. I'd like to think what rent we'd make from this house and what we are contributing to remortgage. That's were I'm stuck any suggestions welcomed. I suppose what can if deposit would I need we are think around 200k to keep our own 60k and buy 140k we are in munster area.do we have to save a little more?

There are a lot of hidden cost associated with purchasing a second house, stamp duty, conveyance and legal fees etc and then you have associated cost with getting your own home ready for the rental market while at the same time servicing a bigger much more expensive mortgage. You can't always rely on a steady income from rental property.

Your joint income isn't huge and I am guessing it all depends on your personal circumstances, i.e children/childcare expenses, healthcare expenses, car loan etc. As an alternative would you consider extending your present home?

not to mention the punitive costs now associated with renting. Income (rent) is taxed at 50 odd percent and you have the headache of dealing with possible nightmarish occupants. Are you landlord material? You'd need a war chest for possible emergencies like if the boiler blew up. The government want your property tax payment also and it's not deductable we're told. You'll be plagued by revenue forms and PRTB registration requirements. Don't forget insurance and Alarms ringing when they're not there and grass mowing and painting and wondering what's wrong when your tenant's name appears on the latest text.

I'd extend if it was possible.