I Have house in south, want new mortgage from bank in North to build in South!

[Oriel27]

Hi Im just new to this website, i must say it is brilliant.
Im wondering have any of you ever come across this situation,

I own a house in Kildare (leixlip), i have it rented out, the rent and TRS cover the mortgage. I recently got a great job opertunity in the North of Ireland, so i decided to rent house out. i bought it for 290 in 2005. Mortgage is for 1300 a month, 5 year fixed.

I work in Armagh, but im from Monaghan, im renting a house in Armagh for 650 euro a month. I have northern bank account, i keep the southern bank account to pay the mortgage in south. I want to build a house in Monaghan, i have obtained full PP.

My question is will the bank in the north give me mortgage to build in south? and having a house already in south will this we a hinderance or seen as an asset?

Believe me, i certainly know how awkward it is to do business in two parts of ireland with an irrelevant border in between!!

 

[LDFerguson]

I suspect you'll need to get a Euro mortgage from a bank south of the border, as most banks don't like taking property as security that's outside their own jurisdiction. Check with your own bank in Armagh, however, as there may be exceptions made for situations such as yours.

If you do need to get a Euro mortgage you should be assessed in the normal way, i.e. the bank will just want to see that you have capacity to repay as well as service any other debts and your lifestyle.

Any lender will look at the rent you're obtaining in Leixlip, discount it by some percentage e.g. 20% for tax and void periods, then compare it to the mortgage repayments. If the discounted rent is less than the mortgage repayments it will be a liability; if more it will be an asset.

By the way, I don't think you should still be claiming TRS on the Leixlip house as it's rented out. Contact Revenue to let them know.