Likelihood of second mortgage

M

marz

Guest
Hi there,

Just wondering what you guys think on likelihood of getting second mortgage...

Married couple with 1 child,

husband self employed (2 years) 45K business growing
wife stay at home mother
savings 70K

currently living 2 bed house mortgage 175K, 29 years left, est selling price 140K or less. never missed a payment, no other debts

Looking for a mortgage of 80K

What do you think?
 
Sorry but I think you'd find it hard to get a second mortgage.
  • One income for a family of three.
  • Business only two years old.
  • Existing home in negative equity.
Is your existing mortgage with Bank of Ireland or Permanent TSB? If so, you might be able to talk to them about selling your property and carrying the negative equity into the new home.
 
LDFerguson said:
Sorry but I think you'd find it hard to get a second mortgage.
  • One income for a family of three.
  • Business only two years old.
  • Existing home in negative equity.
Is your existing mortgage with Bank of Ireland or Permanent TSB? If so, you might be able to talk to them about selling your property and carrying the negative equity into the new home.
Click to expand...

OP does not have negative equity when they sell house...they have 70K savings so can clear mortgage and have a nice deposit for next house. So they are in quite a strong position and only issue would be potential to get mortgage based on income/new business.
 
goingforgold said:
OP does not have negative equity when they sell house...they have 70K savings so can clear mortgage and have a nice deposit for next house. So they are in quite a strong position and only issue would be potential to get mortgage based on income/new business.
Click to expand...

I interpreted the thread title "likelihood of second mortgage" as meaning that they wanted to get a second mortgage without selling the first house. I could be wrong though.
 
Yes we would be looking to hold on to present home for the moment and sell when we would hope to get a better price(whenever that is!) so difficult to say what negative equity we will be in when not wishing to sell now!

At the moment we are running our business from a small house with a young child (only one!)

Anyway think renting a bigger house is best option for us at the moment and rent out our own house.

Just wondering how many years books would a bank usually ask to see for a self employed person??

Thanks for all the feedback.
 
marz said:
Just wondering how many years books would a bank usually ask to see for a self employed person??
Click to expand...

At least three years' audited accounts. They'll take an average of your husband's salary over that period.
 
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