Change of mortgage but not earning anymore

[qweqwerty123]

Hi

I bought an investment house a few years back with my brother. I have since gone back to study (i.e. not earning). Interest rates are hiking up the cost of the mortgage and I would like to change mortgage now.

Am a bit clueless when it comes to these matters tho - can I change mortgage with my brother (who is working still) even tho I am not earning?!!

Also, any advice on what kind of mortgage would be good these days(house has 230k on it and is worth about 385k and is currently on a variable rate and going up steadily)?
Or anyone know any good mortgage advisors in Cork?

Thanks!

 

[Towger]

I don't think other banks will want to know, unless your brother has a well paid job. Would it not be much easer to change to a lower rate with your current bank?

As the houses LTV (loan to value) increases you can get a better rate.

eg for AIB:
ECB plus 0.6% for LTV under 50%
ECB plus 0.76% for LTV between 50 and 80%

You have to go looking for these rates, the banks will not give them off their own back. Just write to the bank stating my house is now worth X, I want rate Y. If the value of the house is obvious they will just give it to you, otherwise they might want a few printouts from My Home of similar houses in the area or at worse valuators report to prove it.

 

[gonk]

As an aside to the OP's question - I think the rate I'm getting on an investment property loan is no longer competitive. What steps do you need to take when switching lender to ensure the loan is still regarded by Revenue as taken out to acquire or renovate the property and hence remain eligible for tax relief against rental income?