Chances of a 2nd mortgage/mortgage top up?

L

Lathm78

Registered User
Messages
2
Hi

We are 11 years into 20 mortgage with 90k left. Never missed a payment and over payment of approx 4k

We originally got 100% mortgage for 200k, no deposit needed. Our house is now valued at approx 100k

We are looking at a new property valued at 140k. We can put 40k down so would need 100k

What are our chances of perm tsb giving us this?
The house we are living in now will rent easily for 550pm which would cover the mortgage on the new property

we would be open to either extending the term of our existing mortgage or increasing the payment - would perm tsb consider either?

The repayment on this is 1030pm which we can pay comfortably

Joint income approx 3700pm and only mortgage and car loan of 340.
 
What are you trying to do?

To buy a new house to live in for €140k?

If you have €40k + €10k equity, you would need to borrow €90k if you sell your own house.

It seems to me that this is what you should do.

You should not have €40k on deposit while having a car loan - unless it's an interest free PCP. How much is outstanding on the car loan?

Do you have a tracker? If so, you can move it to your new home and you should do this. You should also stop overpaying it.

Brendan
 
Thanks Brendan

We would hope to hang onto our originally house in the hope the value would increase before we sell it so we would be looking for 100k for new house so mortgage of 190k in total

We can rent orig house for 550pm

3 years left on car loan @ 12k
 
Let's break it into 2 questions:
1. Does it make sense to keep the house, and
2. Would you get 2nd mortgage.

1. You'll have 90k mortgage, house value 100k, earning 550pm rent.
Your gross rental yield is 6.6%. say you refinance this as a BTL mortgage, you'll be paying 5% interest. So 2k a year to pay property tax, insurance and upkeep. Before income tax.
How secure would the rent be? Based on values, I'm assuming a very rural area. How long would it be vacant between tenants? What if interest rates increase and it's loss making?

Mortgage repayments 1030, so this is going to be cashflow negative, and a major commitment to you. Realistically you would need to refinance it over a longer term to have any chance of getting a mortgage.

It's purely a property price play. Do yoy want your entire assets tied up in property?

2. Mortgage.
What age are you both?
What's your gross salary? Are you both employees?
Any dependents?

You need to pay off the car loan, and refinance the other mortgage over longer term as your monthly commitments are too high.

On, and look beyond PTSB.
 
You must log in or register to reply here.
Back
Top