Should we save for a bigger deposit for new house or pay off large Negative Equity

rudidog

I need some advice. Myself and the wife want to buy a new house. We have a deposit of £55000 and salaries of over £100000 combined. We would need a mortgage of around £230000. However and its a BIG however, We have a property with a large amount of NE that we have rented out since we have moved. Probably around £170000 NE.
I know that a bank may not lend to us at all but should we overpay that mortgage substantially to bring down our debt, or save like hell for a larger deposit. Which will lenders look more favourably on? Or would they consider us at all. We are talking a 3-5 year time frame.
Ant help or advice appreciated

getmore4less

Did you realy mean £170,000.
Whats the place worth now?

Does the rent cover the mortgage?

Did you get concent to let?

maninthestreet

OP, you are just re-asking the same question(s) you've already asked on your other thread, but now giving even less information about the current property you own:

https://forums.moneysavingexpert.com/discussion/2798214=

beecher2

You need a plan to pay off the NE on the Dublin property before taking on even more debt. Buying another property may well not be an option for a long time.

rudidog

Thats what I have been trying to find out. I am not trying to trick or cover up anything. Place was bought for 460000 with 410000 outstanding. Now worth 250000. All prices in euro. I just wanted to know and try and put some plan in place so we might be able to buy in the years ahead. I dont want to waste 5 years saving when I could have been paying down that mortgage and saving on the interest. The rent does not cover the mortgage. There is a shortfall of about 300 every month whic i cover.
Bank has not been informed. The laws are different. The property had to be bought as an investment property, which it certainly was not, to be put on a buy to let rate which are higher obviously. We are on an ECB tracker so it is good. The banks would not have the gall to attempmt to change your rate after what they have been up to! Local politicians have been involved in trying to resolve those issues.
Still would like to know my best course of action though. Just dont want that decision to affect the res of my familys life. (well aware it might)

beecher2

If you're paying more interest on the mortgage than you'd get from savings, then overpay the mortgage. If not, save. Ultimately you're already on over 3 times salary so have to get that amount of debt down before taking on more.