Want to buy house in Dublin - advice on how to approach the bank!

B

BB10

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Need some assistance if you can help - we live in Dublin in rented accommodation but own a house in Cork that we can't sell and want to buy a house in Dublin if possible, but not sure how banks will approach the request.

We are not in negative equity thankfully but we have rented out the house and there is a monthly shortfall of 900 that we have to pay to make up the difference which is on top of our 1650 rent that we pay in Dublin.

We have 11 years left on the mortgage for the Cork house and I was wondering if it was possible to change to a buy to let mortgage over a longer period of time so we could reduce the repayments to match the rental income and so position us well for buying another house in Dublin. Is this possible and what type of mortgage could we get to buy in Dublin, based on the details below?

Current Mortgage: 295k (tracker)
House Value: 335k (paid 440k in 2002 :-( )
Monthly Mortgage payment, including insurance: 2k
Monthly rental income from house: 1.1k
Bank Loan: 13k (rental income goes against this loan)
Annual Income (excl rental income): 182k (split 96k me & 86k spouse I have a specific purpose contract and my other half has permanent job so also worried my income would not be allowable)
Savings: 45k

This year is the first year that we are in a position to think about moving on as I lost a lot of money in a failed business and have spent past 4 years paying off the debt on top of the lost money and finding alternative employment.

Sorry for long post but hope you can help! Thanks for reading
 
Just wondering where you came up with the value for the house you own? You say you can't sell your house in Cork and generally speaking if you can't sell your house it is not priced correctly. While I know it is unfair to value a house solely on rental yield, unless it is detached in a leafy suburb / desirable address with a big garden, I don't see a house with a rental income of 1100 as being worth any more than 185k from an investor point of view. Just my opinion.
 
johnmurf83 said:
Just wondering where you came up with the value for the house you own? You say you can't sell your house in Cork and generally speaking if you can't sell your house it is not priced correctly. While I know it is unfair to value a house solely on rental yield, unless it is detached in a leafy suburb / desirable address with a big garden, I don't see a house with a rental income of 1100 as being worth any more than 185k from an investor point of view. Just my opinion.
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I live in a large, modern (high spec) new house, 1/2 acre site approx four miles from large town in west Ireland (good national road so 5 min spin to town). Similar new houses in my area have sold for 300K-360K+ recently yet the rental income would not come anywhere near this valuation if it were used as a means of valuing a house. So you can't use this method in lot's of cases :)
 
Did I not make provision for similar circumstances to yours in my post when i mentioned about detached houses and big gardens etc. Also, property prices continue to drop outside of Dublin so where they are now may not be an indication of where they end up. However feel free to support your argument further with links to the property price register to show examples of the houses you refer to.
 
johnmurf83 said:
Did I not make provision for similar circumstances to yours in my post when i mentioned about detached houses and big gardens etc. Also, property prices continue to drop outside of Dublin so where they are now may not be an indication of where they end up. However feel free to support your argument further with links to the property price register to show examples of the houses you refer to.
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As requested see one example in attached link:
[broken link removed]

Also note that although we can't speculate on house prices I feel it's important to counteract your argument above by saying that sought after houses like these may also rise in price in future, and certainly haven't fallen in line recently with other properties outside Dublin :)
 
bacchus said:
Why can't you sell ?
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Which would give them a lump sum of 40K (less expenses) to add to their savings. They'd then have about 75K in savings to go to a potential property in Dublin. And even on the one salary of nearly 86K should be able to purchase something decent.
 
In my opinion these days it's not about ur financial position, it's more about how the bank are fixed at that time. They don't want to lend but must be seen to be lending something.
 
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