ECnewbuild
Registered User
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I am a new poster but regular follower. I have a question about the proposed Loan to Income (LTI) rules that may be introduced in the new year.
Facts:
Existing mortgage balance €285k – this property will be retained and rented out. Rent will adequately cover mortgage payments.
New mortgage €200k
Combined incomes for husband & I of €115k
We received mortgage approval earlier in 2014 but didn’t go ahead with our plans to build a house. However we are now keen to start building in early 2015 and am worried that LTI rules will affect our chances of getting a mortgage. Applying the LTI multiplier of 3.5 we would qualify for approval €403k. We only need to borrow €200k as we have savings to fund the remainder of the build. My question is whether our existing mortgage balance will need to come off the top in which case the max mortgage we would qualify for is €118k (€403k - €285k)?
Apologies if this has been asked already – I am just trying to understand how the new rules will have application for us? I’ve asked mortgage advisers in the main lenders and they didn’t know the answer to my question?
Thanks
Facts:
Existing mortgage balance €285k – this property will be retained and rented out. Rent will adequately cover mortgage payments.
New mortgage €200k
Combined incomes for husband & I of €115k
We received mortgage approval earlier in 2014 but didn’t go ahead with our plans to build a house. However we are now keen to start building in early 2015 and am worried that LTI rules will affect our chances of getting a mortgage. Applying the LTI multiplier of 3.5 we would qualify for approval €403k. We only need to borrow €200k as we have savings to fund the remainder of the build. My question is whether our existing mortgage balance will need to come off the top in which case the max mortgage we would qualify for is €118k (€403k - €285k)?
Apologies if this has been asked already – I am just trying to understand how the new rules will have application for us? I’ve asked mortgage advisers in the main lenders and they didn’t know the answer to my question?
Thanks