Second time buyer mortgage deposit query.

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sunnywalk

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I am a second time buyer. I own a property and for various reasons I wish to keep this property and not sell . I am keen to buy a property where I now live however I can only raise about 10% of a deposit. I can achieve the LTI requirements for the property I woyld be looking for. I have read that exceptions are allowed ie LTI or LTV and some second time buyers can get a mortgage with a 10 % deposit. Anyone any experience with this and what lenders would be the best to approach or should I go through a broker for this request. Any advice/ experience welcome.
 
LTV exemptions aren't too bad. Most of the banks ran out of their LTI exemptions though.
A broker would be helpful, as they'll be familiar with the position of each bank in granting exemptions. Just remember that they don't currently deal with BOI.
 
Thank you Red Onion. LTI is fine certainly with all the online calculators I checked based on the house value I will be looking at I did talk to AIB yesterday myself and they were very strict about 20% deposit required. They actually said they might be able to relax LTI!
I think i may try and go through broker. Any advice if I should pay for independent advice or I am aware there are brokers who get commision from lenders. Also any recommendations broker northwest region? I would be willing to travel .
 
With mortgages, the brokers are paid by commission.
The situation with exceptions can be quite fluid. However, all the banks will have a new allowance in the new year, so may grant one in Oct / Nov on the condition it's not drawn down until January.
You also might have the option of refinancing the property you want to keep to raise the deposit.
 
Hey sunnywalk,

We are in a similar position to you. We are very close to closing on our new house.

We have a property that we wanted to keep (it is in negative equity / breakeven at best) and 10% deposit, but, plenty of scope regarding LTI. In our initial discussions with the bank we had misunderstood the exemptions available re negative equity but anyways...

We approached Ulster Bank (best rate and our other mortgage is with them) and Bank of Ireland (cash back deal).

BOI said it was possible but the attitude of the advisor wasn’t very positive. She said that an application for an exemption could only be made for a specific property at an agreed price. Not very helpful when you are house hunting!

Ulster Bank advisor on the other hand was more enthusiastic said she would put the details in the system and depending on availability of exemptions it would give an indicative yes or no. System said yes and she was happy to put in our application for the top end of our budget. So we had the usual 6 months approval in principle to go house shopping.

So turned out to be relatively straightforward.

Good luck!
 
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