Lender Query

[emc]

I have a property in Dublin, which is currently rented.

Myself and my parter are living in the country now, she has a mortgage of 95k on a property valued at around 150k. My own property has a mortgage of 150k and a value of 200k.

Our salaries are 45k and 55k. We have 3 dependants and wish to buy a property that is in need of work. This property costs 100k and we have the deposit of 20k. We pass all the financial stress tests, however we cannot get a mortgage.

The idea is to sell the country property but buying this property is deemed speculation and we are unable to get a mortgage, this is with PTSB and BofI.

Is this standard or is there a lender out there that would lend? Considering that we can meet the repayments it is difficult to understand why we cannot lend money. Both of us are in our mid 30s and have impeccable credit history and both have very secure pensionable jobs.

 

[thedaddyman]

Possibly they may have a concern that you are building a little property empire. I presume you've applied in joint names. There may also be concerns about the limit of debt you will have overall, especially as potentially a property in the country (depending on area) may take some time to sell. You've also not outlined the addition cost of upgrading the 3rd property or why you are planning on buying it, that may also be a factor

Why don't you sell both of your houses and that + the deposit will leave you mortgage free?

 

[emc]

Thanks for your reply.
The objective is to move to a house nearer a town and we were planning to wait until next year to sell the house as we are both taking exams this year. However this property was in an ideal location and we thought that as we had the savings and the capicity to repapy.I note and agree it may take time to sell but if we pass the stress tests to pay it in conjunction with the other loans? The upgrade will cost in the region of 150k