Mortgage Question

M

McMay

Guest
Hi Guys

I bought a house last year with my brother in order to get my foot on the property ladder! We bought the house for 250K whick was good. The house is now worth 350K and there is no reason why it shouldn't hit 400k at the end of the year I hope!!

Anyway I'm not planning to spend the rest of my life with my brother and have no partner. If we where going to sell the house at the end of the year or later and split the profit would it be possible for me to get another some kind of the mortgage with my Situation.

I'm 28 years of Age

My Salary including Benefits is 30K. This may change over the next few months if I decide to do contact work with a bigger salary but I would not be in permanent employment.

I'm no loans whatsoever

Do I have a chance or is flat land forever, how much could I borrow.

Any advice would help guys.
 
Is the house that you bought with your brother your joint PPR (Principal Private Residence) or a rental investment property? I'm just confused by your reference to flat land at the end of your post.

If the house sells for €350K or €400K then how much would you clear after ell expenses (including outstanding mortgage) have been taken care of - i.e. how much of a lump sum would you be likely to have towards the purchase of another property of your own?
 
Sorry I should have made myself a bit clearer, I've had a few bottles :D
The outstanding Mortgage at the moment is 220K . My brother and I are both living in the property. My reference to flat land is the world I could be living in if I don't get another Mortgage for myself and brother sells up. Is it possible to invest in another house with the Equity on the house with already have?
I'm really lost when it comes to this.
 
Sorry - I'm still confused. Originally you talk of selling the house and splitting the profit but now you seem to be suggesting releasing equity and, presumably, holding on to the existing house? Which is it? Is there really any rush in relation to getting you own home given that you are only a year sharing with the brother?
 
We may split the house or try to buy another with the equity. To be honest we are not sure yet or how to go about with it. More than likely it will be a couple of years before be make a move.
What are my options if we split the house or try to buy another with the equity. My brother is on about 35K a year as well. Sorry about the confusion
 
Based on a permanent income of €30,000 plus room rental, no loans and a 40 year term your maximum borrowing capacity is €175,000. So if that, added to the profit on the current house, will be enough to buy on your own at around €240,000. Please note that if you go to contract work you'd need at least a year's contract behind you and a further 12 month contract signed. Given your incomes you couldn't buy an investment property.

Sarah

www.rea.ie
 
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