Getting a mortgage on a property I already own

Maitri_2

I am posting this Q for my daughter who lives in Ireland. They had a mortgage for 5 years on a property that they built. They sold in 2011 believing they could half their mortgage by selling thereby being left with a large deposit for a new property. However, what they didn't realise was that they would not be able to get a mortgage because all they have is one years accounts and her husband is self-employed. We are considering lending them what they need to buy a property they have an offer in on, but can they in a year get a mortgage on a property they already live in to pay us back the loan? If they had a mortgage they could re-mortage but what if they don't already have a mortgage can they get a mortgage on a home they already live in? In a year they will have two years accounts and the possibility of applying for a mortgage. They are looking for 60,000, a mortgage even over 10 years would not cost them what they are paying in rent but give them the security they are looking for with three small children. Anyone any ideas? Thanks in advance

kingstreet

I certainly can't tell you about mortgage rules in Eire, but here in England;-

- you can remortgage an "unencumbered" property subject to status
- you can get a mortgage with at least one year's accounts
- two years accounts plus will open up more lenders/products.

I would have a play on a lender's affordability calculator. Here's a link to the Halifax version. It will give you a rough idea of what they will be able to borrow, based on the likely income, dependents, credit commitments etc.

http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx