Negative equity and getting married

I

irlk2

Guest
Hi,

I'm looking for some recommendations.
I've a duplex apartment i bought with a friend 3 years ago for €290,000. It has a mortgage balance of €265,000 left on it. I believe the Apartment is worth €200,000 allowing for 30% drop.

We're looking to buy ourselves, my future wife and i and these are our circumstances;

Salary me - €46,000
Salary Fiancé - €42,000

Savings joint - €7,000
Savings Fiancé - €51,000

Credit Card me - €2,000 balance
Credit Card Fiancé - €0

Loans me - €0
Loans Fiancé - €0

My broker is coming back to me stating that the negative equity is an issue, but i need to understand if this is the case?

My Fiancé can't get enough of a Mortgage approval on her own so we're stuck in limbo really.

Any ideas?
 

Just want to be clear - do you & your fiance want to buy out your friend or buy a different property?
 
Hi,

Buy a different property. We'd lose all our savings in the buy-out and it's not where we want to live.
 
irlk2 said:
Hi,

Buy a different property. We'd lose all our savings in the buy-out and it's not where we want to live.
Click to expand...

Okay. So you want to leave your existing property as it is & keep paying the mortgage on it.....but your broker is saying you can't get another mortgage with your fiance as you are in negative equity on the first property?

Also, what are your monthly repayments on your mortgage?
 
I took a quick look at the AIB site and it would appear that your fiance should be able to borrow €250K over 30 years assuming first time buyer.

How much is the house you are looking to buy?
 
Repayments are currently €1274 - TRS €169 = €1105/2 (with a friend) = €552.50

The house we're looking to buy is approx €330,000 deteached.
 
And also guys, my Fiance is would not qualify as a first time buyer, she gained the €51,000 from sale of her last house, she was sharing too and happily she made some profit as she purchased a while back.
 
Seems clear enough to me that you should offload your share in the apartment ahead of buying the house.

This would involve stumping up €30k for the negative equity and your friend would need to either buy out your half or agree to sell the apartment.

You'd probably need to save a bit more for the deposit on the new place but your joint incomes would be good for a €300k loan.
 
If you decide the sums work for you would you maybe try another broker and/or get your broker to try more than one bank?
 
Regardless of what you *should* do, - your fiance should be able to buy "on her own strength" before you get married, - ie. without involving you in the mortgage application. ie. This is a purchase by her of a place for "her", - it would just be coincidence if she were to meet someone (you) and get married later.
If you get involved in the application, then negative equity will be an issue.

However, as mentioned by other posters, - you should probably get the NE monkey off your back if you can.
 
just on your fiancée getting a mortgage by herself. My husband earns the same amount and we just barely (i mean extra letters and docs and much discussion) got a mortgage of 200,000 from AIB in the last few months, I am not working at the moment so that was just on his salary. I guess they would take dependants into account so that may be some of the reason and if your fiancée went in by herself with no family then it might be different. Just to let you know though
 
Got offer from aib. They've offered us €230,000 which is basically the same as my fiancee on her own. The negative equity apartment came against me. Even though we've savings and no loans. We decided we'll have to rent. Just wanted to update anyone interested.
 
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