How a mortgage affects future borrowing capacity

Hi,

Myself and my sister bought an apartment together a few years ago, I took a transfer to another city with my job while she stayed and subsequently got married and moved into her husbands house. We rented out the apartment and have kept it as an investment. All is going well, we still each owe 100K but it has appreciated and the rent covers the mortgage.

I have the opportunity to move back to Dublin, I don't want to sell the apartment, move into it, use the equity from it (linked to sister & her husband now) or change anything to do with it. I would however like to purchase a property by myself on the other side of the city.

I know I need to talk to the bank but I was wondering, from previous experience would anyone have any insight on how your borrowing capacity is impacted by an existing mortgage. I have a good income 60K and some savings but if I was to require a 250K mortgage, would it be treated separately?

Any responses appreciated.

Suz

Re: How a morgage affects futre borrowing capacity

How much is monthly mortgage repayment and how much rent do you receive for the apartment?
The lenders will look at the amount of rental cover before making a decision. e.g if the rental is 1.5 time the monthly repayments then the lenders will see the property as looking after itself.

Thanks for your reply. It's only a 1.1 ratio, we have 100 left from the rent after the morgage is paid.