It's highly unlikely you would get a mortgage on your own. For married couples they are going to take all income into account
.. in my situation were I am the sole earner, do you mean all expenditure rather than income into account?
If the negative equity property is generating positive cashflow whilst on an investment mortgage (and stress tested. e.g +2% interest rate), does this mean that banks will therefore deem this to be net neutral and thus ignore in income/expenditure clauclations or will they see this as a 200k liability that I need to settle on behalf of my wife before purchasing a new (as in additional rather than new buld), more expensive family home?
I asked a bank recently about borrowing for an investment and they said that we had to have maximum 80% mortgages on all our other properties to borrow. QUOTE]
So just for a worked example:
2008: property bought for 300k with 90% LTV = 270k mortgage
2013: property values at 100k impying 170k negative equity.
In order to puchase a new seperate property, I'm going to have to bring the original mortgage down to 80k (e.g. pay off 190k), before being allowed a spererate mortgage?
Is that the correct logic?
Thanks
, they will take at best a percentage of the rental income only to allow for empty periods, tax, maintenance etc and they will add this to your income and then they will factor in the repayments at a stress tested rate to your outgoings.
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