We are looking for some advice from anyone who has experience of this. We purchased our first home in 2003 for €170K. in 2008 my husband changed jobs and his new position came with an apartment. We moved into this and registered our first property as an investment property and rented it out. There is no charge to the apartment we are living in as part of his work package.
We now have children and the apartment is too small and we are looking to purchase a second property. We are not interested in selling our first property. The mortgage is now €112K and the property has always been rented with no difficulty. We have about 15 years left on the mortgage.
We have approached the banks about another mortgage but their concern is that the first property is in negative equity and our ability to repay asecond mortgage. They will not take the rental income of our first property into account.
Has anyone overcome this - what advice would you have, is selling our first house the only option? Also banks are giving different information on deposit they would require, some have said 10% and some have said as it is a second mortgage it could be 15%+. We are not sure what deposit we are aiming for with differing advice.
Other info - we are both permanently, full time employed and aged 36 and 40.
Thanks for any advice
We now have children and the apartment is too small and we are looking to purchase a second property. We are not interested in selling our first property. The mortgage is now €112K and the property has always been rented with no difficulty. We have about 15 years left on the mortgage.
We have approached the banks about another mortgage but their concern is that the first property is in negative equity and our ability to repay asecond mortgage. They will not take the rental income of our first property into account.
Has anyone overcome this - what advice would you have, is selling our first house the only option? Also banks are giving different information on deposit they would require, some have said 10% and some have said as it is a second mortgage it could be 15%+. We are not sure what deposit we are aiming for with differing advice.
Other info - we are both permanently, full time employed and aged 36 and 40.
Thanks for any advice