Remortgaging to fund new house

We are mortgage free on our house and would like to upgrade to a bigger house that would require modernization, so we would like to live in our own house until it's ready (12-18m). We focused on paying our mortgage off so wouldn't have the 20% deposit for a new house, unless we sold our current house.

We may be able to stay within the 3.5x income limit, but may be 4x our income to buy the new house, excluding renovation costs. We are in our late 30's, both professional employees in MNCs, so stable implement etc. Once we have our house sold we would have an LTV of c. 20/30%

Few questions;
1) Would it be possible to get an exemption for the 20% deposit and the income limit?
2) If not would it be possible to remortgage our existing house to come up with the deposit?

Yes, ICS/Dilosk do equity release and I understand that Finance Ireland do also.

hi,

1) you can either get a loan to income exception or a loan to value exception, but not both. This would need to be as a home loan
application - not a buy to let as exceptions are not available on BTLs.
2) Yes that can be done.

If you need the double exception outlined above then option 1 won't work.
If you got approval on just one of the 2 exceptions options then, if the figures stack up, you could apply for that & at least secure the purchase for now.

To finance the refurb on the new property you might(depending on the location) be able to release equity on your existing property 18 months down the line - or whenever you are ready to commence the works. Of course, you could just sell your existing property at that point too to pay for the refurb bill on the new purchase.

I hope this helps.


justin.griffith@mortgagebrokers.ie

Fahrenheit said:

you can either get a loan to income exception or a loan to value exception, but not both.

Click to expand...

Hi Fahrenheit

I completely missed that.

Where does it say this?

Is it a Central Bank rule or is it just the practice of the banks?

Brendan

The CBI states the exemptions are a matter for individual lenders.

There's a nice chart on the excel files that show the distribution of lti and ltvs. Looks like there are a small number of exemptions to both the lti and ltv rules for ssb's and none for FTBs. The numbers are so small though I wouldn't want to rely on it.

Brendan Burgess said:

Hi Fahrenheit

I completely missed that.

Where does it say this?

Is it a Central Bank rule or is it just the practice of the banks?

Brendan

Click to expand...

Hi Brendan,

Double exceptions - i.e. LTI & LTV - are a no go for SSBs.

I've yet to see one getting done or any lender advertising that they'll even assess such proposals but that's not to say it's not possible

Fahrenheit said:

Hi Brendan,

Double exceptions - i.e. LTI & LTV - are a no go for SSBs.

I've yet to see one getting done or any lender advertising that they'll even assess such proposals but that's not to say it's not possible

Click to expand...

Looks like there were five double exemptions in the first half of the year. Like I say they do exist but are so few that you shouldn't count on getting 1 of them