Negative Equity Plan

Liam

Registered User
Messages
14
Hi all,


We are looking to move house in the next 18 months are trying to come up with a plan, so any and all observations/recommendations/comments both positive and negative are greatly appreciated. The idea is to trade down to a smaller house which is closer to family and friends.

The plan would is to trade down and buy a house for around €200,000.

With this said I would like to see what ye think about our best options for our current house (rent/sell?) as it is NE.

Would love to buy a site and self build as I have experience in building but I think this may be a bridge too far.

Should we keep the current houseas it is on a tracker, rent it out and get a second mortgage!

Should we sell this house and carry the Negative Equity onto our new home!

Here are the details..

Income Details

Net Monthly Income: €3,000 Permanent (€70,000pa) Age 35

Net Monthly Income: €2,600 Permanent (€45,000pa) Age 34

Child benefit: €130(we have a 5 month old so childcare costs from September, wife back to work(€6,000 saved to subside her until then).


Mortgage: UB

Amount outstanding: €275,000

Market Value: €230,000

Negative Equity: €45,000

Interest Rate:Tracker ECB + 1.15%

Monthly Repayment: €770

Amount in arrears:Nil

Term remaining: 32 years

Rental market: Rural Location (€700/€800 pm at a guess if we were able to get tenants).

Other Loans: Nil

Credit Cards: Nil

Savings: €20,000

Saving: €1,300 P/M

Childcare:€900 starting September


Do you expect any lump sums in the medium term future?Yes.

Just to make it a little more complicated I intend to change jobs in 18 months time so it's important we get a mortgage prior to this.

I will have a pension of a little over €18,000 gross p/a with a lump sum of €45,000 Our intention would be to use this lump sum to renovate the new house.


What is your preferred realistic outcome?

Home in a more convenient location. Hopefully move in 18 months but prepared to wait a little longer to do it right this time.


Should we Sell or Rent our existing home?(Want to move to a location closer to family and friends in 18 months if at all possible)

Should we get a second mortgage (is this financially wise) based on the details above?

Is self-build an option for us (site required)?

I wonder is it worthwhile meeting with the bank in the next few weeks to see what they reckon our options are and how to get there in 18 months?

Should we use a mortgage broker?

Should we transfer our current accounts and savings account to UB?

If we do sell our house, how long have we to find another house if we have mortgage approval? What happens if we go past this period?

Would the bank allow us to purchase a new house prior to selling our existing home (bridging finance).

We are trying to figure out the best options open to us and would be extremely thankful for any advice given. Thanks to anyone with more experience than me for taking the time to help,advise.

Thanks,
 
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