C
Caboose
Guest
Hi There,
Myself and my wife recently married. We both have a house each and until recently we used to pay our mortgages separately. We both live in my wife's house.
The combined total of our mortgages is ~€560k. The mortgage on my house is €1,200 a month (Fixed rate of 4.95% due to expire December 2011) and can get rent for €700 a month leaving a shortfall of €500. I owe ~€260k and have 30 years remaining on my mortgage.
My wife's variable rate mortgage has just been increased to €1400 due to interest rate hikes. She has approximately 32 years left on her mortgage. We are both in our early 30's.
My house which I purchased in 2006 was valued at €296k and is now worth approx €140k. My wife's house was purchased in 2008 for €360k and is now worth approx €240k (long story involving builder threatening to sue her when she wanted to withdraw from sale due to devaluing of house value).
We are just about able to cover the mortgages, but due to pay cuts will run into financial difficulty soon. We have not missed any payments yet.
I have a couple of questions for anyone who may be able to offer advice:
1) Will the bank allow me to sell my house and carry the outstanding balance on my wifes house?
2) Now that I am not living in my own house, I presume I will loose the tax relief at source on my mortgage which is worth approx €2.5k a year (€200 a month)?
3) Would it make sense to sell my house and combine the mortgages into one, as I can rent my house out and earn €700 a month on it?
I just need a bit of advice from someone who knows what they are talking about before I approach the mortgage lender and not knowing what questions to ask them.
If anyone needs any clarification blast away
Myself and my wife recently married. We both have a house each and until recently we used to pay our mortgages separately. We both live in my wife's house.
The combined total of our mortgages is ~€560k. The mortgage on my house is €1,200 a month (Fixed rate of 4.95% due to expire December 2011) and can get rent for €700 a month leaving a shortfall of €500. I owe ~€260k and have 30 years remaining on my mortgage.
My wife's variable rate mortgage has just been increased to €1400 due to interest rate hikes. She has approximately 32 years left on her mortgage. We are both in our early 30's.
My house which I purchased in 2006 was valued at €296k and is now worth approx €140k. My wife's house was purchased in 2008 for €360k and is now worth approx €240k (long story involving builder threatening to sue her when she wanted to withdraw from sale due to devaluing of house value).
We are just about able to cover the mortgages, but due to pay cuts will run into financial difficulty soon. We have not missed any payments yet.
I have a couple of questions for anyone who may be able to offer advice:
1) Will the bank allow me to sell my house and carry the outstanding balance on my wifes house?
2) Now that I am not living in my own house, I presume I will loose the tax relief at source on my mortgage which is worth approx €2.5k a year (€200 a month)?
3) Would it make sense to sell my house and combine the mortgages into one, as I can rent my house out and earn €700 a month on it?
I just need a bit of advice from someone who knows what they are talking about before I approach the mortgage lender and not knowing what questions to ask them.
If anyone needs any clarification blast away