# Using property as collateral to secure a mortgage



## Itronoc (9 Apr 2015)

Sorry if this has been asked many times before.

My wife and I live abroad. Last year we bought a 2 bed apartment for 60,000 cash (no mortgage) in a small town in Ireland. We rent it out. We now want to purchase a second apartment, but this time with a mortgage. It's in Dublin and costs approximately 200,000 euro. My question is as follows:

Do banks in Ireland entertain the possibility of using one property (our 60,000 apartment) as collateral to secure a mortgage to purchase another property. We can probably scrape together about 30,000 deposit for the new apartment, but its just if they look for more of a deposit, I'm wondering will they accept the deeds on the first apartment?

Does anybody know the practice/likelihood of this being entertained?


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## gar32 (23 Apr 2015)

I am in the same boat. Any one with advice here please ?


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## Monbretia (23 Apr 2015)

Income will be the number one decider, additional security comes second and I doubt whether it is likely to be much good, it didn't go too good for the banks the last time they used this practice!


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## Bronte (24 Apr 2015)

Actually it's an interesting question.  I wonder would you get the mortgage with a deposit without mentioning Property 1 at all.  Probably not.  You'd have to have a larger deposit as an investor.  And they don't like non residents. 

Are you not better off selling Property 1 on which you have no mortgage to offset.  What returns are you making on that?

Positive is that you've bought once, and that you have experience as a landlord.


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## gar32 (28 Apr 2015)

I was have an apartment in Dublin and was thinking of get a 2nd to also rent out. I was hoping to pay the 2nd off quickly (5 to 10 years) using the rent from both.  seems not living in Ireland would not go down well with banks


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## Bronte (28 Apr 2015)

Banks do lend to ex pats.  It helps Gar32 if you are already with them and have a record of borrowing etc.  Have you done the figures?


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## gar32 (3 May 2015)

So I am in a little bit of a better place then Itronoc in that I have a large dis-posit. I have come across another problem that will stop me. I need 30% to buy a place here where I live. With houses going for around €250k I will have to use it here and put 2nd Apartment on hold. I hope to come back to this issue in a few years as I like the idea of rental income topping up what else is coming in. 

Thanks Bronte


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## gar32 (4 May 2015)

Change of plans again

I would only need to borrow  about 20K to buy a small 1 bed for 125k   plus expense

Would boi give me a mortgage for that.


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## maccers_85 (7 Sep 2021)

I was wondering if anyone had any up-to-date experience with this. I have a 200k valued commercial property paid off. I am trying to secure 200k from the banks but because I am self-employed and a relatively new business they can not give me more than 120k. Is there a bank that would be interested in taking this mortgage if I up the commercial one up as collateral?


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## Dave Vanian (7 Sep 2021)

maccers_85 said:


> because I am self-employed and a relatively new business they can not give me more than 120k.



It sounds to me as if the bank has an issue with your perceived ability to make the repayments every month and not the collateral.  If that's the case, then I don't think adding another property to the collateral will improve your chances as it doesn't do anything for your perceived ability to make the repayments.


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