Negative equity mortgage

[Louiseo]

Hi i currently own an apartment mortgage left is 220,000 value is 180,000 NE 50,000. I have it rented for 1050 a month and repayments is 914
I am renting a house for 1200 monthly. If i look to buy a family would i get a mortgage again carrying my ne

Salary 47,000 annually
Deposit /gift 60,000
Looking to buy a house for 290,000

 

[Brendan Burgess]

Which lender is it?

What rate of interest are you paying? It looks like a cheap tracker, with a rate of around 1%.

Are you buying it on your own or with someone else?

Brendan

 

[Louiseo]

It's with Ulster bank on standard tracker 2.4 %. I will be buying with my husband my gross is 34000 and his gross is 24000 so sorry annual salary would be 58000

 

[Brendan Burgess]

OK, it would look like the following:

You have a gross salary of €58k.
3.5 times this is €203k

So €270k is way over the Central Bank limits, so I don't think that they would approve this.

The good news is that your current investment is very profitable. The rent exceeds the interest comfortably. This gives you a stake in the housing market. A good part of your repayments is capital, so you will pay yourself out of negative equity in a few years.

The conditions for the Ulster Bank mover mortgage are here, but as you exceed the 3.5 times income limit, they are unlikely to lend to you. To be honest, that is too big a mortgage, so even if they did make an exception, you should not take on a mortgage of that size.

Brendan

 

[LByrne]

HI I was wondering if anyone could give me some advice;
I am planning to go to a broker in the next couple of months but i wanted to see if i had any chance of getting a mortgage.

I currently have a property (2-bed apartment) bought in 2008 with a mortgage of 216,000 euro- mortgage currently 198,000 euro left on mortgage. The property is approx 100,000 euro so i am around 100,000 euro in Negative..

I want to trade up in the future as it is only a 2 bed apartment. I am currently renting it out at the moment and the rent covers the mortgage repayments. it is a tracker mortgage of 1.5%+0.25% ECB. The apartment is in an ideal renting location and I could even increase the rent if needed be.

My salary is 45K and my finances is 40K. We have 90K in savings and no credit card debt, loans etc.
I save 1,600 per month and my fiance saves 1,200 per month on top of we pay 400 euro per month on rent.

I am looking into getting a property at approx 230K and getting a mortgage of 190K

What would my chances be or are they pretty slim?

Any advice would greatly be appreciated.