How would second property in neg equity impact our mortgage application?

G

geeb

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Hi,
We’re hoping to move home & when applying for a mortgage we’re wondering how banks would view a second rented property in negative equity.
We should get €320K for our home in this market. Mortgage is €80K, leaving us with about €240K to put towards new home (less fees etc).
My salary is €100K. My partner is a full time parent looking after our child so that’s our only income.
Unfortunately, we have a mortgage on the rented property of €260K and that property is worth only about €190K now. When that property comes off interest only we’ll have to add about €300 per month to the rent of €1200 to pay the mortgage. Obviously that affects our net disposable income.
Would a bank give us a mortgage in that situation and how would they factor in the second property? Ballpark what kind of mortgage could we expect?
Any thoughts appreciated.
Geeb
 
They will not take any of the rental income on the property into account.

The €1500 will be subtracted from your net disposable income.

A lot of lenders are not approving applicants who have a property in negative equity so you may need to pay that down in order to get a mortgage.

All mortgages are underwritten on a case by case basis now, there are no relevant ballpark figures.

www.moneybackmortgages.ie
 
NorfBank, that's not strictly true what your saying about the rental property....where I work, we assume 2 months voids per year and maybe more depending on the location of the property and the number of properties available to rent
 
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