Looking to move this is complicated

So I posted back in August about my house having pyrite and it being too small for the family
The situation has changed since then.
My partner will hopefully get redundancy in the next couple of months. So we will have a lump sum and also have a bit of savings squirreled away.

So my mortgage 260K house worth maybe 190K it has pyrite.
Wifes house which is rented has positive equity of around 120k.
Wife has a share of a house with her sister down the country this is in big negative equity 90k currently not rented out as in some section 23 group scheme it comes out if this at the end of the year and we would hope to get some rent from it,
Mortgage for that costs 800 a month

Combined we earn around 120K no other loans our childcare is 1500 a month 3 very young children.

My thinking is rent out my house, the rent will cover the mortgage with me paying maybe 100 a month to cover the tax implications . Status of mortgage on it is, part of it is on tracker 80k say rest is on variable.

Redundancy around 70K Savings say 35k, sale of wifes house would be 120K.
I would be hopping to get a mortgage a 200K. Bearing in mind my wife will be out of work with redundancy. But shouldnt be for too long maybe going contracting or look for permanent position elsewhere wages would increase or be static.

What are our options here?
We have seen a couple of 4 beds we would be interested in ranging from around 340 to 400 so would be looking at the idea of getting a mortgage and using our savings as well.
Would it be an idea to move the house in positive equity as we make money on the rent of it to KBC and get mortgage from the same and see if we can keep it. This house is in a 10 year lease with Fingal we can break it with a 8 weeks notice period.

So Redundancy confirmed today around 80K say we sell the other house thats 120K and savings of 35K
Would we get a mortgage of 200k say or could someone calculate what we could get.

I find it all very hard to follow. Is the following correct

You are currently living in a house
This house is worth €190k
This house has a mortgage of €260k - €80k tracker ; €180k SVR
The mortgage is with KBC

You want to buy a house for €400k

You have €105k cash.

Why not get a Negative Equity mortgage?
Sell your current home.
Keep your €80k tracker, but they will charge an extra 1%.

Your mortgage will be
NE. €70k
House €400k
Less savings €105k
Mortgage required €365k - i.e. an additional €105k

Or better still, sell the wife's house so that your new mortgage will be only €245k

Given that you have another property in NE, I think that this would be better than owning 3 houses with mortgages.

Brendan

Ok my first post was confusing and apologies for that. Ill break it down as easy as I can

Primary residence This house has pyrite no damage showing but a high amber rating. So can't sell it.

Properties

1 245 remaining on mortgage. Rough estimate house with pyrite re-mediated would make 200k (25k to re-mediate would be required before sale for 200k.) 80k on tracker 160k variable rate with AIB My name.
2 Rental property Dublin 15 120K left on mortgage house is rented worth around 240K. AIB Wifes Name. Rent covers mortgage
3 House in baltimore shared ownership in wifes name shared with her sister. 90k in negative equity so 45 each. With PTSB Wifes Name No rent

Savings
Redundancy in June for wife 80k
Joint savings 40k
Sale of house 2 profit 120K
Combined 240K

Major outgoings
No Loans
Childcare 1550K a month

Incoming
Combined wages 120k
Child allowance 3 kids (Twins) around 500 euros


So I am wondering with house 2 sold and money in the bank. Would a bank lend to us. We would be looking to buy a 4 bed house in north co dub. Ranging from 330k currently to 400k.
Thanks for reading this and apologies for the confusion

Would your wife not be better off paying her sister the NE of 45K and getting her name off the mortgage? That would free up 400 Euro + a month. (Even if not rented make sure everything is ok tax wise)

You'd still be left with around 200K to go towards a house of 400K.

On your pyrite home you have NE of 55K (Mortgage 245, value 190).

First step is to got to KBC and see what they say.

Presumably on just one wage you could afford a new mortgage.

Make sure you understand what interest rate will be applied to your current home if it becomes an investment property.

I am not familiar with the pyrite story.
Are you banned from selling them or is there just no market? Would someone not buy it and do the remedial work themselves?
You have the money. Should you not just do the remedial work and then sell it?

2 Rental property Dublin 15 120K left on mortgage house is rented worth around 240K. AIB Wifes Name. Rent covers mortgage

The general guideline on this would be to keep it if it has a cheap tracker, but to sell it if it does not.

I presume that the Baltimore house is a holiday home? And your wife doesn't mind paying a lot of money for the holiday. If it's an investment, then the tracker vs. SVR applies.

If you do fix the pyrite, would you consider moving into this house while you are fixing it.

It seems to me that you should simplify your life by fixing the pyrite and selling that house and transferring the tracker.

Brendan

Ok Just an update after speaking to 2 financial advisers

They reckon a bank won’t touch us without getting rid of the Baltimore mortgage first.

Will have to look into this and see if we can sell it, or transfer it. How do you go about this?

Is it a case of transferring the house to the other party and pay half the amount of the negative equity on it. Will the bank have to stress test this person as they would do with a new mortgage?

The Dublin 15 house is in a 10 year lease 2 years into this we would have to sell it with the tenant in-situ this may make it longer to sell but it should sell ok to an investor. This is a SVR mortgage

My own house with pyrite the only option with this will be to rent it. The estate isn’t finished properly yet, it has pyrite but no damage showing. Banks will not issue a mortgage against it as it has pyrite. My thinking is I will rent it for 3 -5 years and once I have the money to remediate it I’ll get it done and sell it. In this time period the estate should be finished green areas etc.
80K on tracker rest on SVR


So to break it down
House Net worth Mortgage Remaining
Rented house in Dublin 15 220000 120000 100K SVR
Primary Residence * Pyrite 200000 240000 40K- 80K Tracker 160K SVR
shared ownership investment 120000 180000 60K- SVR

Totals 540000 540000