Hi there
Myself, fiancée and 2yo child are from Dublin but are currently living in a house we own outside Dublin. We all commute to Dublin city Centre 5 days per week which is starting to have a huge effect on our health mentally and physically so we have decided we need to make a change. It is also costing us a small fortune commuting in with diesel/tolls and regular car maintenance.
Ideally we would love to sell the house outside Dublin and buy a house where we both grew up close to family friends and cut a huge chunk off our commute.
The issue is that we have a second property (apt) currently let out which is in negative equity but is in a great location so rental income is good and it is on a tracker mortgage so I feel this is a good long term investment .
Looking at the current mortgage rules I feel that we haven't a hope in getting mortgage approval for a house if we sell the house we are living in and keep the rental property as we don't have any savings and we are on averages salaries however I wonder if any institutions are willing to take into account rental income when calculating the amount they will lend? Secondly I wonder regarding the 20% deposit now required for second time buyers....is this negotiable at all?
If we can't get mortgage approval we will probably sell the house anyway and rent until we can figure out what to do but given the rental market at the moment I am nervous about putting my family in this situation.
Figures below, hopefully I've included everything...
We have 2 mortgages (well 3 technically) all with AIB
First mortgage taken out in 2006 for house we currently live in...
Type of Property. 4 bedroom house.
Value of Property: approx 200k
Amount of Mortgage 183k
joint variable rate mortgage
Term of Mortgage: 25 years left
Second (& third) mortgage taken out in 2008 which is currently let out...
Type of Property. 2 bed apt
Value of Property: approx 190k
Amount of Mortgage total €250k
1- 230k
2- 20k (this was a 'top up' from equity in house when buying apt, used as deposit for apt)
joint tracker mortgage for both amounts
Term of Mortgage: 27 years left
Rental income in this property is €1300 per month and we have never had issues with letting it out
Our details:
Age 31 & 32
Employment situation. Private sector.
Salary: €40,000 & €36,500
How long are you in current position and are you permanent. Both permanent. I'm 10 years there, have very good defined benefit pension and other good benefits. Fiancée is in his company 2 years, has standard pension.
Have you any children. 1 child age 2 in childcare 4 days per week costing €800 pm
Have you any other loans. Credit card with balance of €7,500- paying minimum amount back monthly
Any previous negative Cr. history by either applicant. No
We have no current savings due to renovations we did last year of house we are currently living in
I would appreciate any advice or opinions if we should contact AIB or if any other institutions look positively on investment property? Or should we just sell everything and try start again?
Myself, fiancée and 2yo child are from Dublin but are currently living in a house we own outside Dublin. We all commute to Dublin city Centre 5 days per week which is starting to have a huge effect on our health mentally and physically so we have decided we need to make a change. It is also costing us a small fortune commuting in with diesel/tolls and regular car maintenance.
Ideally we would love to sell the house outside Dublin and buy a house where we both grew up close to family friends and cut a huge chunk off our commute.
The issue is that we have a second property (apt) currently let out which is in negative equity but is in a great location so rental income is good and it is on a tracker mortgage so I feel this is a good long term investment .
Looking at the current mortgage rules I feel that we haven't a hope in getting mortgage approval for a house if we sell the house we are living in and keep the rental property as we don't have any savings and we are on averages salaries however I wonder if any institutions are willing to take into account rental income when calculating the amount they will lend? Secondly I wonder regarding the 20% deposit now required for second time buyers....is this negotiable at all?
If we can't get mortgage approval we will probably sell the house anyway and rent until we can figure out what to do but given the rental market at the moment I am nervous about putting my family in this situation.
Figures below, hopefully I've included everything...
We have 2 mortgages (well 3 technically) all with AIB
First mortgage taken out in 2006 for house we currently live in...
Type of Property. 4 bedroom house.
Value of Property: approx 200k
Amount of Mortgage 183k
joint variable rate mortgage
Term of Mortgage: 25 years left
Second (& third) mortgage taken out in 2008 which is currently let out...
Type of Property. 2 bed apt
Value of Property: approx 190k
Amount of Mortgage total €250k
1- 230k
2- 20k (this was a 'top up' from equity in house when buying apt, used as deposit for apt)
joint tracker mortgage for both amounts
Term of Mortgage: 27 years left
Rental income in this property is €1300 per month and we have never had issues with letting it out
Our details:
Age 31 & 32
Employment situation. Private sector.
Salary: €40,000 & €36,500
How long are you in current position and are you permanent. Both permanent. I'm 10 years there, have very good defined benefit pension and other good benefits. Fiancée is in his company 2 years, has standard pension.
Have you any children. 1 child age 2 in childcare 4 days per week costing €800 pm
Have you any other loans. Credit card with balance of €7,500- paying minimum amount back monthly
Any previous negative Cr. history by either applicant. No
We have no current savings due to renovations we did last year of house we are currently living in
I would appreciate any advice or opinions if we should contact AIB or if any other institutions look positively on investment property? Or should we just sell everything and try start again?