how can I get a mortgage if I own a property above with negative equity?

ssemog

Hello,
Thank you beforehand for any help and advise.
I bought a house in Portugal in 2004. I then moved to the uk and in the meanwhile with the economic crisis, house prices in Portugal crashed down.
So, although the house value is currently around 50 000 Euros, I still owe the bank 80 000!
I rent the house for 350 Euros which does not cover the 400 Euros a month mortgage and insurance that I am obliged to pay. I usually send 150 Euros to Portugal a month to cover the remaining mortgage, pay taxes and to save money for eventually needed repairs or in case the tenant wants to leave and I have money to pay the mortgage until I find another tenant.

How will this be seen by a lender? As a £30k debt? As a 150 Euros a month or 400 Euros a month liability? I'm trying to use affordability calculators but I couldn't find any clear info regarding my case.

Relevant info: I have a good credit score. I am single, have 3 children and earn £25000 per year, I also get around £6000 per year in child benefit and tax credits. I pay £60 a month in student loans.
I am saving for a deposit and if all goes well, I should have £15000 in less than 2 years time. I would like to buy a house in the price range £100-120k.

My expenses are modest and I've been paying £700 per month of rent for a year and managed to save money.

Any advise to improve my chances of getting a mortgage?

Thank you.

maninthestreet

Your monthly liability seems to be €400.

Thrugelmir

ssemog wrote: »

Any advise to improve my chances of getting a mortgage?

Thank you.

The mortgage on the property in Portugal has to be addressed. Not only in terms of obtaining a mortgage but also your own financial security. Perhaps start overpaying by an amount every month to bridge the negative equity gap.

How long does your mortgage in Portugal have left to run?