Can we get a 2nd mortgage?

We would have a free small site with pp from my parents but we have a mortgage already for a house that is prob about 30 grand in neg equity. We can afford the payments fine and would prob keep this house while building the new one. The plan would then to hopefully remortage or release equity on the self build when completed as its value will have increased from beg of build and clear the neg equity on the original house and sell it.
Do you think this is possible? What I'd really like to know is would the bank give us another small self build mortgage although we have a mortgage already. Should it be an issue if we can afford 10% of self build mortgage as deposit and can show to afford the payments of both?

You'd probably need to post some indicative figures (e.g. amount of outstanding mortgage, approximate value of existing property, amount of new mortgage, income etc.) for people to comment meaningfully. In the absence of those sort of details I would tend towards being skeptical about any lender offering you further credit in this situation and in the current climate.

If you qualify for another mortgage ie if your multiples add up and you have sufficient NDI, there is no reason why you can't have any number of mortgages.

However qualifying for a mortgage is not the same as you saying you can afford repayments. The lender will assess your application based on their lending criteria including your multiples and outgoings rather than on what you say you can afford.

If you had to sell the existing house for a loss taking the negative equity into account, could you still comfortably manage a new mortgage? These are the questions you have to ask yourselves as these are the questions the lender will be taking into account.

Don't forget to take the additional expenses e.g. overruns, increased life and fire cover into account when doing your maths.

Sorry re post in other section. Had it done before realised.
Amount withstanding is approx e196,000. House is worth approx e160,000 (hard to tell in current market) On fixed rate at mo which expires next July. Prepared for going on svr of approx 7.4%
We have a joint income of approx 65,000. Partner has one credit card at approx e1000. No other loans, no late payments etc. Plannint to over pay mortgage a bit each mth from next aug. saving for wedding next July so can't do anything til after then.
Would be hoping to borrow 125,000 euro to totally complete new timber frame self build. We would be hoping to start this 2 yrs down the line. By then would be paying our mortgage just over 3 yrs.

lanie said:

Amount withstanding is approx e196,000.

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Over what term? How long left?

On fixed rate at mo which expires next July. Prepared for going on svr of approx 7.4%

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Eh!?! SVR of 7.4%!? Are you with a sub-prime lender or something?

We have a joint income of approx 65,000.

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What is your net monthly income and your regular monthly expenditure (including pro-rata on annual household costs)?

saving for wedding next July so can't do anything til after then.

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How much per month?

Would be hoping to borrow 125,000 euro to totally complete new timber frame self build. We would be hoping to start this 2 yrs down the line. By then would be paying our mortgage just over 3 yrs.

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Ah - so you are about one year into your existing mortgage?

e196,000. - over 33 yrs
On fixed rate at mo which expires next July. Prepared for going on svr of approx 7.4% - we were on 2 yr fixed rate of 5.14%. As we are neg equity will = svr next year
We have a joint income of approx 65,000. - regular monthly expenditure approx e500 perm month
Myself e2,800 / mth gross , partner approx e2000 mth gross
saving for wedding next July so can't do anything til after then. - Both saving approx e625 per month for wedding.
We took out a 100% mortgage 2 yrs ago (I know! ) Forgot to say we are based in the North of Ireland. Have converted figures to euros. Hope thats ok

lanie said:

e196,000. - over 33 yrs
On fixed rate at mo which expires next July. Prepared for going on svr of approx 7.4%

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7.4% is ECB + 3.15% - that's a shocking rate!

Forgot to say we are based in the North of Ireland.

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Oh - so it's the UK Central Bank rate that is actually relevant here...!

Sorry, was just looking for opinions on original posts question

Suppose what I'd like to know as well is although we would be able to afford it, would a bank provide us with a second mortgage even if our original mortgage was in negative equity?
Would the negative equity straight away put a big x to our application?