Hello all,
This is my first time posting in this forum so please forgive me if I don't frame this properly or leave out important information. My circumstances aren't overly common, we have engaged a broker who is struggling a bit to obtain AIP for us and I was wondering if any members would have any tips. I'll set out our circumstances:
Me: 44 years old, €103k salary, civil servant, I own a home worth €200k with a €25k outstanding remaining mortgage with 8 years left to run. I have that property rented out currently at €2k per month, I'm overpaying the mortgage of €350 (tracker) by €400 per month currently (€750 total), I have €50k in savings.
Partner: 39 years old, €93k salary, public servant, she owns an apartment worth €375k with €230k left to repay that we're both currently living in, she is paying €1250 per month on the mortgage plus €100 management fees. She has €45k in savings.
We have been saving €2300 per month for the last year between us (more like €2500 per month if increase in current A/C balances is included), our net monthly income after tax (including tax set aside for my rental income liability @ 52%), pensions and health insurance is €9,800, we then pay €2k of that for the mortgages, with another few hundred for management fees, electricity, internet and so on.
Our broker was initially confident that we would have no issue with obtaining a mortgage of up to €600k, we aren't looking to draw down that much as we'd like to keep the monthly repayments for the new property at around the €3k mark. We've been looking at properties that would go for around €600k, so a mortgage of €540k.
Unfortunately our broker has come back to us today to tell us that BOI are saying they won't include any of my rental income/profit as part of my ability to repay, as it's not earned income, reducing what the bank say is our repayment ability to circa €2100, this would only afford us a mortgage of around €440k.
So a few questions, are there other lenders who would take into account rental income at all? I was under the impression that BOI were amongst the better ones in this regard, this does not appear to be the case
What else could we do (apart from, of course, saving harder/more, which may be just what we have to do for another 6 month) to increase the mortgage we could obtain? Even at bare bones, in a worst case scenario with a €3k mortgage and no rental income from either rental property coming in our monthly repayments would be €4,600, with a net income for us after that is paid of €4,200, that seems robust enough from a stress testing perspective but maybe we're dreaming in terms of what we can get while holding on to the two rentals?
Any thoughts or advice is most welcome!
This is my first time posting in this forum so please forgive me if I don't frame this properly or leave out important information. My circumstances aren't overly common, we have engaged a broker who is struggling a bit to obtain AIP for us and I was wondering if any members would have any tips. I'll set out our circumstances:
Me: 44 years old, €103k salary, civil servant, I own a home worth €200k with a €25k outstanding remaining mortgage with 8 years left to run. I have that property rented out currently at €2k per month, I'm overpaying the mortgage of €350 (tracker) by €400 per month currently (€750 total), I have €50k in savings.
Partner: 39 years old, €93k salary, public servant, she owns an apartment worth €375k with €230k left to repay that we're both currently living in, she is paying €1250 per month on the mortgage plus €100 management fees. She has €45k in savings.
We have been saving €2300 per month for the last year between us (more like €2500 per month if increase in current A/C balances is included), our net monthly income after tax (including tax set aside for my rental income liability @ 52%), pensions and health insurance is €9,800, we then pay €2k of that for the mortgages, with another few hundred for management fees, electricity, internet and so on.
Our broker was initially confident that we would have no issue with obtaining a mortgage of up to €600k, we aren't looking to draw down that much as we'd like to keep the monthly repayments for the new property at around the €3k mark. We've been looking at properties that would go for around €600k, so a mortgage of €540k.
Unfortunately our broker has come back to us today to tell us that BOI are saying they won't include any of my rental income/profit as part of my ability to repay, as it's not earned income, reducing what the bank say is our repayment ability to circa €2100, this would only afford us a mortgage of around €440k.
So a few questions, are there other lenders who would take into account rental income at all? I was under the impression that BOI were amongst the better ones in this regard, this does not appear to be the case
What else could we do (apart from, of course, saving harder/more, which may be just what we have to do for another 6 month) to increase the mortgage we could obtain? Even at bare bones, in a worst case scenario with a €3k mortgage and no rental income from either rental property coming in our monthly repayments would be €4,600, with a net income for us after that is paid of €4,200, that seems robust enough from a stress testing perspective but maybe we're dreaming in terms of what we can get while holding on to the two rentals?
Any thoughts or advice is most welcome!
