Getting mortgage approval when we have neg equity apartment

Redback

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We are currently living in Australia but coming home to 1 permanent job at Christmas. (yeeeahhh) I think the probation will be 6 months and will have a Salary circa 62k
I won't be working as we have 2 kids that aren't school age yet and know childcare would be crippling.

Anyway we have an apartment in Dublin on a tracker.
Mortgage is about €910. We currently have it rented out for 975€ monthly.
All other apartments in our block are €1200 minimum but we have fantastic tenants so don't want to increase rent on them unless we had to.
We have a mortgage of about €210,000, recently similar apartments seem to be selling for 150/160k

Since we ve been out in Australia we ve managed to save about €40k and plan to move in rent free with family to save heavily before looking for mortgage approval. Thinking we might be able to save about €1600 monthly
I know husband will have to see out his probation period successfully anyway.

Since the apartment is paying itself we really don't want to sell it and have to carry with us the neg equity plus the bank would obviously add extra interest to the tracker rate.

We re hoping to buy in the countryside as it's cheaper a house in or About €180k.

What's are chances of getting a mortgage for the new property?
Will we be encouraged to sell the apartment and bring with us the neg equity?

All advice greatly appreciated or any insights.
Looking forward to coming home but the whole thing has me stressed already on top of a big move!
Thanks everyone :)
 
Don't get stressed, there is no point. And well done on the big family move home. That's bound to have you all in a tizzy.

Because of your particular situation, I would imagine a broker is your best bet to tell you your options. Alternatively make soundings with the main banks. But start with your own bank.

Which bank is it, others on here might know the current situation on that.

A new bank that seems eager for business is KBC.

Because you are on a tracker, I'm assuming you are paying very little interest, so it's mostly capital payments, which is a form of saving.

But you have to consider if it is worthwhile keeping it. Because I assume you will be in the highter rate tax bracket and it means because of your low investment interest rate, that you will be liable for highter taxes on the rental. You'd have to give all the figures on here for people to try and take a calculation on that.

I assume that you know your legal obligations in relation to NPPR, property tax etc?
 
Assuming you are with one of the main lenders which allow you to transfer your tracker to a new property, then that is what you should do.


Property value|€150k
Mortgage|€210k
Negative equity|€60k
Cash|€40k
Net position|-€20k


You already have a heavy exposure to the property market and lending, so you cannot take on the additional risk of a new mortgage.

Check out the terms and conditions of the lender's tracker mover product. They only apply to loans for a person's principal private residence. But assuming you bought the property as your home initially, then I think you should be ok.

To be absolutely sure, you probably should consider moving into the apartment before applying for the move.

You might run into a problem with the proposed 20% deposit from the Central Bank, although you may be exempt with a mover mortgage.
 
Thanks

We are with AIB currently with the apartment.

Yes we are fully compliant with all the taxes and charges as a landlord! God knows there is enough of them. Thankfully we got an accountant last year do sort out all our finances and didn't get caught with that €7k NPPR charge!

We have gotten the name of a broker and been in touch with him, but additional advice is always fantastic to receive.

Thank you both so much for your advice.

Brendan , so you think moving the tracker is really our only option?
And to confirm ( as I'm really only v new to this) , if we were doing that option we should move back into the apt prior to seeking to transfer the tracker rate over.

Do u know, obviously we lost our TRS when we leased it out. Can you get that back if we move back in?

Also we told the revenue only after a year that we were renting the apartment, delaying only because we were terrified when the revenue told the bank to stop the TRS , we feared the bank would pull us off the tracker.
Hence we owe the revenue the yr of TRS we shouldn't have been receiving.
The revenue know this a good year! Any chance they might forget and not look for the TRS refunded to them?
 
I should add by the time we actually go to buy we reckon we will have saved that additional 20k

I honestly don't think I could the try to start saving another amount of 20% for a deposit.
This saving is exhausting. :(
 
I think you need not to rush into buying property. You have to see how it works out living with your family, this might not be a bed of roses. If necessary you may have to consider moving into your rental.

Concentrate now on the move and resettling back into Ireland. That will actually be a cultural shock for you, especially if you've been abroad for any period of time.

Re the TRS, I advice you to sort it out, it cannot be a large amount. Ask your accountant. Revenue may indeed never notice it, but you'll have it hanging over you forever. And Revenue do forever like nobody else.
 
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