is this possible?

P

pcocp

Registered User
Messages
144
will the bank entertain the following do you think?

married couple, early 30's, 2 kids, living in typical 3 bed semi in galway, realistic value today €290,000 approx, outstanding mortagage €285,000 over 33 years, so no equity obviously.

if we wanted to move to a bigger house outside the city, and rent out the 3 bed semi, which will rent easily due to location, can the mortgage on the semi d be 'changed' to allow rent cover mortgage repayments, eg, extend term, interest only....etc? rent would be approx €900/950 pcm.

we have savings of approx 30k, but i don't want to use this to make any lump sum capital repayments on the mortgage. we have been approved for a mortgage of up to €400k last week, and given the way prices are going we're considering moving out of town.

I would like to keep the semi d, for the kids/future etc. I'm just wondering if the bank would think two mortgages are too much, we're with PTSB but willing to change to another bank if necessary.
 
On what basis did you get the 400K approval - did they know about the existing outstanding mortgage?

This question and it's implications has been asked and answered numerous times.
 
yes they did know about it, i got mortgage approval at the same branch the original mortgage was approved in and drawn down from. in fact i've dealt with the same person both times.

and i have no intention of borrowing 400k for the next house, max borrowing would be 350K.

if it's been discussed before, i'd appreciate some links...
sorry for repost.
 
simple answer to your question is you'll still pay a minimum mortgage of about €1200pm going interest only. So you'll have to pay €300pm on top of €900pm rent, the full €1200pm whilst the place is unoccupied and the maintenance costs.
 
Check with the bank whether or not the approval was given on the assumption that the existing house is sold. There's no way of knowing without knowing your financial details. If you earn wads of cash, the bank will be happy to let you have two mortgages.
 
pcocp said:
I would like to keep the semi d, for the kids/future etc. I'm just wondering if the bank would think two mortgages are too much, we're with PTSB but willing to change to another bank if necessary.
Click to expand...

Again, impossible to tell without knowing what you earn and what (if any) other outgoings you have.
 
rmelly said:
sounds like the bank are okay with you having the 2 mortgages so, but that doesn't mean it's a good idea.http://
Click to expand...

yes this is what i'm thinking...
thanks for the links.
i'll read through them and i'll post more details later if I'm still unsure.

and we don't earn 'wads' of cash, outside of mortgage we have no other debt at all.
 
You have been approved for a €400k mortgage but want to spend only €350. Well with stamp duty and legal fees the €400 k will be used up. And with other costs of moving your savings will get a good hammering. Now saying that if you are moving out of the city you will be able to get a great deal on a property for €300 k or less. The market outside the city has died a death.
 
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