How does an existing mortgage with my ex affect the amount I can get with a new mortgage?

Hi everyone.
Query for you. I currently have a mortgage for €100k with my ex-partner (joint application). I want to purchase another property as a single applicant which will become my primary residence, whilst keeping my name on the previous mortgage (For reasons not to go into here). What value does a second mortgage work at? If I have a €100K salary, assuming Im classed as second time buyer, the maximum mortgage I can get is €350K, (3.5 x 100k) without exception I assume?

However, as there is a €100K mortgage already outstanding, does the €350K get reduced by €100K? or is it halfed as "current" mortage is joint, so would be reduced by €50K? Or what way does it work?

So summary
Mortgage 1- €100K remaining as a joint application
Mortgage 2 - How much with this be based on a €100k salary as a single applicant for a primary residence.

Thanks

I don't know the answer to your question. You do not have a €50k mortgage. You have a €100k mortgage, so I am guessing that they would reduce the €350k by €100k. But as I say, I don't actually know.

This is one of those cases where a mortgage broker should be helpful you you. They would know how to present your case. The exception might be the bank with which you already have a joint mortgage. Knowing the background, you could approach them yourself.

The payments on your existing mortgage are factored in to the affordability calculator the banks run, so if for example using makey uppy figures they say you can pay 35% of your net monthly income in repayments and your income is 5,000pm then you have 1,750 to make loan repayments. This must cover the new mortgage, any other loans like car loans etc and the old mortgage, obviously the higher your monthly income the more leeway you have.

They don't consider you owe half of it as you are actually liable for the full mortgage repayment shoud the other party not pay. Banks may be a bit more lenient in some circumstances but this is the way it is mainly dealt with.

Gargoyler said:

I want to purchase another property as a single applicant which will become my primary residence, whilst keeping my name on the previous mortgage (For reasons not to go into here).

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To my knowledge all lenders will treat it like it’s a rental property as they won’t give anyone two PPR mortgages.

So that usually means higher rates and lower LTV.

Yes the old property won't be my PPR. Basically living with my parents the last year, still on my ex's mortgage as due to health reasons there's an issue with her getting her own mortgage (for now). I'm investigating getting my own mortgage so just trying to figure out what way this gets treated for me.

AFAIK it’s still treated as a PPR mortgage even if you don’t live there.

The main issue is repayment capacity, I assume you were not married or if you were are divorced or have separation agreement in place?

Yes not married. She inherited the property and we took out a mortgage to get alot of work done on the house.

So its the "repayment ability" over the cost of both mortgages? EG as above, if it's 35% of my income, which is €1750pm and the other mortgage is €500pm, it's whatever mortgage I can get where the max repayment ability would be €1250?

TheBakersDozen said:

So its the "repayment ability" over the cost of both mortgages? EG as above, if it's 35% of my income, which is €1750pm and the other mortgage is €500pm, it's whatever mortgage I can get where the max repayment ability would be €1250?

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Yes, whatever mortgage at the bank's stress tested rate for repayments rather than the actual payment fits the amount available for repayments and subject to the multiple of income cap as well or whatever exception they are willing to give on that.