How much are we likely to qualify for?

D

Daisy09

Registered User
Messages
56
Hi there,

My wife and I are looking to buy a house - here is our situation:

Rental Property

Mortgage: 300k
Property worth: 250k
Good location - always rented out - rent covering mortgage


Currently living in an apartment

Mortgage 220
Property worth: 170 ish

We now need to move as wife is pregnant with number 2 and we want to buy a house.

Wife earns 40k permanent
Me: 60k permanent

Savings: 60k - good records of saving
No other loans

How much is a bank likely to loan us if we rent out the apartment? Just looking for a ball park figure or to hear from anyone in this predicament.
 
As far as I know banks will not take rental income into account any more for affordability, so I think you would struggle to get any mortgage.
 
It is definitely possible as I have a friend and a work colleague who have recently done this (ie. rented the initial property they bought and moved to a new property which they have also bought). Both told me that the banks took rental income into account. But they didn't tell me any more and I didn't like to pry. Just wondering if there is someone out there who has applied for this recently, which banks etc?
 
While your friend might have done it with one property you will struggle to do it with 2 rented properties both in negative equity. Even if the rent covers the mortgage the bank will take into account the tax due on the rent and costs and will reduce the income accordingly. They may consider you are over exposed at the moment as even with your savings if you were to total your new plus existing mortgages against values you will still be in overall negative equity, not a position a bank would like.
 
Thanks everyone for your replies.

Society we have not applied yet, our plan has been to keep saving until the end of the year and then see how things go then. We are only looking for a small mortgage of 200k which I thought would be do-able but I don't know what to think now :( We really need to move for the space and to rent a place would cost us more than the new mortgage, plus we would like to buy a place to live in permanently.
 
You can just make an appointment with your local mortgage advisor at a local bank and have a chat with them. That's the best way to find out.
You don't have to go through the whole approval process, and at least you will know what the general feeling is, and you know what you are dealing with.
 
Or chat to a broker.. [broken link removed] (he posts here but I forget his username) was a great help to us even though we didn't even end up using his services.
 
your best bet is just make appointment with mortgage person in either aib or BOI as they hardest to get loans from- will give you your worst case scenario-i suspect you'll struggle to get a 3rd mortgage. And dont forget to factor in that childcare for 2 kids will but a major dent in your disposable income and /or one of you may wish to take partental leave off to mind the kids - and you might be taknig a huge risk leaving yourself with potentially 3 mortgages to cover- why not sell the flat , then rent while you house hunt and your in a stronger position for buying and you'll be able to sleep at night !?
 
Thank you for your response choccy. To be honest I thought the apartment was worth in region of 170 (and I thought that was being cautious) but there is now one up in the estate for 160 and its not selling. I just don't think we could sell it but we would rent it no bother. My wifes Mother will be minding our children so we are extremely lucky in that respect. We are hoping to move closer to her....oh I don't know, maybe it can't be done. Not sure what are next option will be then!
 
A
New guy said:
To be honest I thought the apartment was worth in region of 170 (and I thought that was being cautious) but there is now one up in the estate for 160 and its not selling.
Click to expand...

It may therefore not even achieve 160 in a sale.
 
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