Option for obtaining 2nd mortgage when tied into current mortgage with another person

Hello,

My query isn't straight forward, hence my posting on this site.

I am a current home owner on a tracker mortgage with another individual. The house is partially leased out and I don't reside there, however the other owner does.

I am looking at the possibility of a 2nd independent mortgage just in my own name, independent to the first property. There is an element of negative equity.

1) Will the 1st property loose the tracker mortgage if both people do not reside there, or will one owner remaining at the property suffice?
2) What kind of details will I need to provide to the bank for a 2nd mortgage app, will they review this independently, not even sure if it's possible to have two separate mortgages.
3) Can I navigate to other mortgage lenders other than the bank that my current mortgage is with?
4) Will the banks look for earning details of the person still residing in the current property in relation to my NEW application to ensure the 1st mortgage is still covered.

Thanks all

Dublin 30

Are you trying to buy a second property?

Is the first property PRTB registered? Or is it 'rent a room'?

Figures would be helpful.

Hi

-Yes, trying to buy a 2nd property (on my own) - no involvement with current joint mortgage owner
-No, the 1st property isn't PRTB registered, rent a room only at the moment, although it has been fully rented in the past, but not registered. (Short period only) - but may look at this option for the future, as current rental market would ensure that the mortgage is more than covered. (BUT would not conform with tracker t's and c's)
- Current mortgage approx 260k, valued at approx 200k (possibly on the generous side), liability of approx 130k each on the joint mortgage.
- My earnings aren't excessive either.

Thanks

Do you not think you should resolve the first property before buying another? You don't owe 130K each. You both owe 260K. If one of you defaults the one earning will be the one who has to repay.

What is your salary, how much do you want to borrow? And why?

What is your arrangment re rent, mortgage and tax on the first property?

In an ideal world absolutely, however both our circumstances have changed, no longer want to 1) reside together or 2) take a huge loss and payback if we sold the property with such NE.
So my hope is for a small mortgage of in or around 130k ish to purchase another property, as this would work out cheaper than the current rental charges!

Salary is shy of 40k, am I kidding myself?

all is split 50/50 at minute, however i'm not living at property so my half is covered by the rental room.

I don't think a bank will lend to you. Do you even have a deposit. I understand now you were a couple so you cannot live in the first property. I think that it would be best if both of you talked to each other 'financially' to get this property on the straight and narrow and offloaded asap. So you should be looking at solutions on this. Such as paying 30K to your ex to get your name off the deeds. But you'd have to get a bank to agree.

You really need to figure out the affordability of the second house. That's what the banks will concentrate on.

How much are you currently paying in rent, have you any savings at all? You should fill out the money makeover template and list all your outgoings.

Are you renting out "your" room or is the room rented out by the two of you?
ie does the rent pay for your share of the mortgage or is it divided by two and subsidises both of your payments on the mortgage.


I would think from your salary and likely costs that it's a non-starter, but you never know.

Thanks all.

Yes, I'm hoping that it is based on the affordability of the 2nd home, as I have been managing paying significant rent for some time now and yes, I have savings.

Yes, I'm renting out my room

You need to give figures then, people can't help on what you've given so far.

Sure -

Current joint mortgage tracker: €260k
MV: €200k optimistic
Current rental potential €1k per month - how would this affect tracker?
One owner still residing in home
Other owner (me) renting, paying €1k per month
My room in house leased out with income of €500 per month, which covers my half of mortgage.

I'm looking for advice on options to obtain a 2nd independent mortgage (on my own)
Salary is shy of €40k
Deposit of €20k possible

Would I be better positioned if whole house was rented out? My ex partner may not have an issue with this as he travels a lot.

It's well and good to advise on sorting out issues of one house, but the practicalities are that I need a home in the next 12 months, and the rental market is a tough place at the moment.

Hope the above info helps somewhat to allow for any advice.