second mortgage application

V

val78

Registered User
Messages
19
Hi am looking for some advice please. Have tracker mortgage on my home. Looking to my current bank for mortgage on home of birth which hope to renovate This property would also have amount of land with it as collateral. Bank has come back with story about ability to repay andsuggested selling house with tracker and carrying the loss into new mortgage.They not accepting fact that we paid similar amount to projected future combined repayment when our tracker was on variable. Both have small cc debit, both good jobs public and private service. Would I be anyway correct in thinking bank using this opportunity to get rid of a loss making tracker?
Frustrated with them as we have never missed repayment on anything And have long banking history with them. would I be wasting time trying other institutions where I have no history?
 
You need to give more detail on your individual nett income/number and age of dependants/your own ages/your current mortgage details and repayment details /value of current house/value of proposed acquisition and proposed new borrowings/your Cr Card details and any other relevant details. You are correct about one thing and that is they want to remove the tracker
 
Thanks for reply. current mortgage 210k market value for 130K rental potential 400/500 per month.repayment of 750 per month. House for renovate worth 60k at present with 120k work needed.Land valued at 250k both without mortgage. Combined salary of 85k gross with additional Agricultural income of 6k pa. 2 children and elderly mother on state pension. saving of 16K mother with access to 40k. 4k credit card debit.. Appreciate you taking interest
 
Are you buying your original home for €60k? Does it come with land attached which is valued at €250k? Who are you buying it from?
There are a lot of issues involved here but more info is needed.
 
Butter thanks for reply. Yes lot of issues. No not buying it inheritance/gift need funds to refurbish modernise house, which upon completion would be worth 180/200K.. It a nightmare to be honest
 
It's also a bit confusing when you read the initial post.

You are being gifted the house & land - presumably from a parent? There could be tax issues there which you will need to look into as well. Has the transfer actually happened or is it a proposed transfer?

At the moment you're saying that the house is worth €60k, the land is worth €250k. After €120k of renovations the house will be worth €180k. Are you sure that it would be worth that amount? I can see why the bank would be reluctant to advance €120k for the house project. The land is presumably family land & it would be difficult to realise any value from it & so it's not really a great collateral proposition.

You are looking at total borrowings of €330k on a best case scenario on assets of €130k + €200k (after renovation) = €330k. I'm leaving out the land value here. There's no equity in this for the bank. Plus on an income of €90k you are looking at borrowings of 3.6 times income.

Do you want to do this urgently? I think it would be very difficult to get a bank to go for this.

Is your current home close to the old family home?

If you own the home house & land could you renovate slowly over a number of years using your savings, your mother's savings & income (presuming she lives with you?) and your income? You'll be paying down your mortgage at the same time and hopefully coming out of negative equity.

If it were me I would not sell the current home & carry the loss. I'd just wait & do things slowly & gradually. I know that's frustrating though.
 
Hi, yes being gifted the property from parent. no tax implications per my accountant due to me qualifying as a farmer.. Yes anxious to do this as soon as.. I going to try my best but as you point out will be difficult to get money to complete job. We probably will have to look at doing part just enough to allow us to move into house and save to get it finished. Would rather not go down that road if could avoid it as have visions of it being left for years partially completed..It all very messy or complex as the bank likes to keep telling me.. thanks for showing interest have another meeting today with bank. agree that don't want to sell my negative equity and carrying it if could be avoided at all. values are from auctioneer and have been watching market so pretty sure of them.
 
Hope the meeting went ok.

Would it be worth trying to find a mortgage broker with experience of mortgaging farms/land? They might be able to suggest something.
 
Butter,meeting went well. Much better outcome than I thought. Going to look into mortgage on land rather than house. Manager was different to deal with than who I was dealing with earlier. More years of experience under belt. Getting back to me but fairly positive that can get it sorted for us in what maybe a round about way!! Will keep you posted. Apparently though that banks very keen to lend for land!!
 
Land worth 250K has an income of 6K? Is this correct?

Why do you have credit card debt?

Especially when you have savings of 16K

Don't like the idea of the mother gifting land and house and savings?

Is the mother taking independant legal advice?

Will you not lose the tracker if you rent out your home? What will the repyaments be then?
 
Last edited:
You must log in or register to reply here.
Back
Top