Hi All
We bought a house as private residence 2003, remortgaged to buy current pr when we moved from Dublin in 2006 and kept the Dublin house. (why oh why?)
Currently we're renting the Dublin house, its worth 200K absolute max, the mortgage is 390K, we're on interest only, mortgage and income tax are covered by rent, no profits coming out of it.
We have a mortgage on our family home with the same mortgage provider as Dublin house.
The Dublin house is effectively costing us money and our interest only period is running out which means that we will need to top up about 1200 per month on top of rent towards that mortgage.
SO- we came up with the idea (which would need Lender approval) of selling the Dublin house, crystallising our loss and seeing if the Lender would agree to us having all the negative equity on our home, which we could then chip away at since we are both working. It would be an enormous mortgage but it would mean no more liabilities on the Dublin house which is old and going to need expensive work soon and no income tax liability etc.
What does anyone think, would we be crazy to even suggest to the Lender? Would we be crazy to do it? We both have permanent jobs at the moment but would need us both to be working to be able to afford this plan.
I'd be very interested in opinions.
Thanks
We bought a house as private residence 2003, remortgaged to buy current pr when we moved from Dublin in 2006 and kept the Dublin house. (why oh why?)
Currently we're renting the Dublin house, its worth 200K absolute max, the mortgage is 390K, we're on interest only, mortgage and income tax are covered by rent, no profits coming out of it.
We have a mortgage on our family home with the same mortgage provider as Dublin house.
The Dublin house is effectively costing us money and our interest only period is running out which means that we will need to top up about 1200 per month on top of rent towards that mortgage.
SO- we came up with the idea (which would need Lender approval) of selling the Dublin house, crystallising our loss and seeing if the Lender would agree to us having all the negative equity on our home, which we could then chip away at since we are both working. It would be an enormous mortgage but it would mean no more liabilities on the Dublin house which is old and going to need expensive work soon and no income tax liability etc.
What does anyone think, would we be crazy to even suggest to the Lender? Would we be crazy to do it? We both have permanent jobs at the moment but would need us both to be working to be able to afford this plan.
I'd be very interested in opinions.
Thanks