Getting a Second Mortgage

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laura28

Registered User
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Hello,

Hoping for some advice here. We are currently sale agreed on a property, selling our existing property and availing of a tracker mortgage mover product. For a myriad of reasons we may no longer be able to proceed with this and instead might have to keep our current 2 bed property and buy a different home. I would appreciate any views/comments on this and issues I may not be considering -

Value of current property - €210k
Current Mortgage - €165k
Mortgage Repayments - €600 p/m Tracker - 0.75%
Current Rental Value - €1500 p/m

New Home Cost - €375k
Savings - €35k
Home is a new build so no renovation etc costs


Income - €61k & €50k
both permanent roles, full time, 1 x private sector, 1 x public sector
2 children, no childcare costs
No other loans etc.

This is an option we are exploring at the moment and I would appreciate your views on the following -

1. Will any bank give us a second mortgage while we retain our current property?
2. I understand being a landlord is a nightmare but on the figures above, considering tax etc what sort/if any of revenue would we generate?

Are there any major pitfalls to this plan?
 
Apartment would make a great investment, but as 2nd time buyers you need 20% deposit under CBI rules.
 
Thanks for your response. We have actually gotten an exemption on the 20% deposit to only need 10% but that was when we were selling the apartment. Is that an option if we were retaining it?
 
It'll depend on lender, but being honest highly unlikely.

Lenders only have a certain percentage they can provide exemptions to each year, and have discretion over how they select. In your case they probably want you off the tracker rate you're on (either increasing the rate 1% now, or you losing tracker in 5 years). You're taking that away, and increasing your overall debt, so less attractive to the bank.

This year almost all the banks misjudged their exemption limits and will be getting a slap on the wrist from CBI at year end - I imagine they'll be stricter next year.

If you go to same lender, will they let you keep tracker if you tell them it's becoming an investment?

Have a look at this thread for more ideas / analysis about keeping the apartment https://www.askaboutmoney.com/threads/keep-apartment-as-rental-or-move-tracker.203907/
 
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