looking for mortgage

M

meltie

Guest
my situation is as follows I currently own house worth 240,000 mortgage 155,000 paying interest only with IIB, am in the process of building a house with my partner mortgage 220,000 with Ulster Bank house value when finished mid '06 450,000, the idea being that when new house is finished that my house would become an investment property. Our combined income is 74,000 (incl overtime), savings of approx 30,000 . I am interested in buying a second investment property off plans for 180,000 and am wondering what our chances are of getting a mortgage. Any ideas appreciated

Thanks
 
Hi,
Seems a bit risky. your loan to income ratio would be very high with 3 properties. Could you afford to pay 3 morts if you have vacancy rates in 2 investment properties..??
I assume you are going to live in you new built home..
What would the rental income from your 2 investments be? can you cover the income tax on both every year?
You may get the mortgage from some banks, not all. Again, seems high risky to me on your joint income level.
Regards
Colm
 
I think and I could be wrong that banks will lend you upto approx 85% of the combined value of your properties. ie. if your properties are worth eur 1m, you can borrow 850k ( depending on your income level) . Assuming I am correct and taking 180k as the value of the 2nd inv property - u have a ratio of 51% and that would mean you should be ok.
I agree with colm5, you will be borrowing alot for your income level. You will be also be putting all your eggs in the property basket. You should also consider an interest rate hike which should not be too bad in 2006 but that will mainly depend on the performance of France, Italy & Germany.

Are you using your savings for stamp duty? and have you considered the costs ie. furniture, legal fees etc!! I would recommend that you do an analysis of the projected costs and proprosed rental income(10 mths a year) and see can you afford it.

good luck
 
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