2 properties,aiming for a third,mortgage approval hassles.

B

brianer

Guest
I own two residential properties in Ireland.Property A valued at 330k and property B at 300k....mortgage outstanding on A 196k and on B 145k.Not crazy about selling either property during the present climate but am interested in a third property value 400k approx.
Aiming to apply for a third loan as closes to 400k as possible(equity in both my present properties is quite high) and go interest only on all three for about a year 'til I find a comfort zone for repayments.
Am I being realistic about any institution lending me a further 400k on top of my present mortgage of 341k(196k+145k) and does anyone have any other ideas/options?
 
In the current climate it may be hard to get any more borrowings but it will depend on the property in question.

What is the purpose of the property?
Do you intend to rent it out?
What will your rental income be per month?
How much of a deposit are you able to put up?
 
Thanks for speedy rply vanilla.
A and B properties will become investment and property C will be my primary residence.Personal income p.a. is about 55k.A and B properties easy to let and rent from both will cover the 341k mortgage.Unlikely I will be able to afford capital and interest repayments on propery C(interest only mortgage would be bearable).This is the main sticking point with the banks).Deposit(50k I estimate) would come from equity release on either property A or B.
 
I would expect lending institutions to tighten up on their lending criteria because of the worldwide credit crunch. This could even mean further rises in interest rates because the banks are finding it more difficult to raise money on the money markets. This will make it more difficult for house purchaesers to borrow money and this, of course, will mean that house prices will be affected.

I would suggest that it is better for you to wait for some time before purchasing this property because property prices are falling. It would be best for you to see how this all pans out before committing yourself because if prices continue to fall at the current rate you might be able purchase this property (or a similar one) at a big discount in the future.
 
Thanks for your reply and your advice Steve.
Will certainly heed it and perhaps hold off for a few more months.
All the best.
 
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