1eyeonthefuture
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Excellent. Never entered my thoughts. ThanksPut a high price on it and tell the estate agent or another one to market it quietly
Assuming one was to take this approach, would it be wise to take out a variable rate mortgage on the new property so that you would not be stung with early repayment charges for paying back a lump of the principal after the sale of the original property?Depending on income, savings, and outstanding mortgage you may be able to raise sufficient funds to purchase the new place and then sell the current one afterwards.
Really depends on the rates, the lender, and how long the process will take.Assuming one was to take this approach, would it be wise to take out a variable rate mortgage on the new property so that you would not be stung with early repayment charges for paying back a lump of the principal after the sale of the original property?
No. You're taking out a PPR mortgage on the new home, because you are going to move into it.Second mortgages might be subject to BTL rates as well. I'm not sure what the practice is.
Yeah, I had no issues getting PPR rates when proposing to keep the first property.No. You're taking out a PPR mortgage on the new home, because you are going to move into it.
You might tell the lender you are keeping the existing property to rent out.
I'm curious as to whether there is some period after which the PPR rates expire if you haven't sold the first property? Or does it not matter if your total borrowing is within the Central Bank's LTI and LTV limits?Yeah, I had no issues getting PPR rates when proposing to keep the first property.
No. So long as you are buying a house to be your PPR, and meet your mortgage repayments, the bank couldn't care less what you do with the other property, unless maybe both mortgages are with the same bank.I'm curious as to whether there is some period after which the PPR rates expire if you haven't sold the first property?
The market will dictate that really. When the agents have buyers lining up down the street, they'll pick and choose. If demand is low or an offer is higher than the agent thinks they'll get elsewhere, they'll be more flexible.The “estate agents don’t want chains” argument doesn’t seem consistent with what I’m seeing amongst family and friends.
I presume if the LTV on my existing PPR was less than 70% ( the max LTV for a BTL) it wouldn't really matter from a central bank perspectiveOr does it not matter if your total borrowing is within the Central Bank's LTI and LTV limits?
The bank's affordability calculations will take that into account. In my case I had to provide a form from an estate agent detailing the expected rent. A percentage of that was then allowed in the calculations and income had to be sufficient to satisfy stress testing of both mortgages.The challenge would be the banks own credit policy. If the potential rent was many multiples of a mortgage repayment l'd imagine they'd happily ignore the first mortgage but I wonder what the tipping point is? If rent was twice my mortgage payment, after tax that would be barely breaking even and wouldn't leave much of a buffer for a missed rent payment.
Out of curiosity what was the percentage that was allowed.The bank's affordability calculations will take that into account. In my case I had to provide a form from an estate agent detailing the expected rent. A percentage of that was then allowed in the calculations and income had to be sufficient to satisfy stress testing of both mortgages.
From memory I think it was 80%.Out of curiosity what was the percentage that was allowed.
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