Do we have any chance of securing second mortgage?

K

Kit78

Registered User
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Hi All,
First time poster to AAM but regular follower and find advice great. Here goes my query:
Unfortunately bought at height of market with a mortgage of 285k remaining ,25 years outstanding and probably 80-100k neg equity. As with many posters house no longer meets our needs. We have a 2 year old and due second little one later this year. We earn basic 120,000 combined both public servants and permanent. We also earned a further 15 k in overtime last year combined but am told this won't be considered.

We currently save 2k a month (for last 3 years) and now have 70k accumulated in savings. Mortgage repayments 1050 monthly. We definitely do not want to sell our house so would be looking to keep it. Rental would hopefully be around 1000 monthly as it is in busy Dublin suburb and that seems to be going rate. No other loans or credit card bills.

My question is will any bank touch us for a second mortgage? realistically we would need to borrow around the 300k to afford a family home in the area we want. Am I dreaming???
 
Why not let out your home and rent a new home when you need to move?

This minimises the risk and allows you to eliminate the negative equity in the shortest possible time.

Who is your lender? Some are doing negative equity mortgages, although I don't think that they are a good idea.

brendan
 
I agree with brendan. Very similiar situation. We moved out and rented and havent looked back. Renting is much less stress and hassel and you can then plan your next move when you are ready. Why not rent in the area you are hoping to settle in and that way its like a trial run. Buy when the banks settle a bit.
 
Kit78 said:
My question is will any bank touch us for a second mortgage? realistically we would need to borrow around the 300k to afford a family home in the area we want. Am I dreaming???
Click to expand...

I'm not ignoring the other posters' good advice.

But to answer your straight question - assuming that your salaries are broadly equal and that you have no other loans, I'd say you could qualify for a second mortgage. Probably nearer €250,000 than €300,000.
 
Brendan Burgess said:
This minimises the risk and allows you to eliminate the negative equity in the shortest possible time.

Who is your lender? Some are doing negative equity mortgages, although I don't think that they are a good idea.

brendan
Click to expand...

thanks for the advice. When you say eliminate NE in shortest possible time, do you mean put our savings towards it?I would be worried doing that as it would mean no deposit for another property.
 
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