Looking to move houses

BigBang

Registered User
Messages
1
Age: 34
Spouse’s/Partner's age: 33

Annual gross income from employment or profession: €90,000
Annual gross income of spouse: €70,000

Type of employment: Private (both)

In general are you:
(a) spending more than you earn, or
(b) saving?

(b) saving - apx €3,000/month.

Rough estimate of value of home €190,000
Amount outstanding on your mortgage: €300,000
What interest rate are you paying?
ECB plus 1.00% - 30 years left
Currently overpaying by €500/mth

Other borrowings – car loans/personal loans etc.
€4,000 (Car Loan) CU unsecured

Bills: Approximately €400/month

Do you pay off your full credit card balance each month? No
If not, what is the balance on your credit card? €900

Savings and investments:
€50,000
€2,000 shares

Do you have a pension scheme?
Me - Yes: 9% non-contributory, 3% AVC

Children:
Twins under 1 yr.

Life insurance: Mortgage cover

What specific question do you have or what issues are of concern to you?

We own a 2 bedroom apartment, bought approximately 6 years ago close to the height for €350,000. We are very happy in it, but we just had twins and we're tight for space. The current value of our apartment is apx. €190,000, significantly under the current mortgage. We have seen a house for €315,000 which we are interested in.

We are both in secure jobs, but my wife will be going back to four days a week once maternity ends, therefore there will be a reduction in income.

We have not gone to the bank yet but I would be interested in getting peoples opinions on the following options and whether either of the below would be considered viable by the Bank given our salary and future plans:
1. Selling apartment, taking the NE onto the new mortgage
2. Buying and holding onto apartment as rental investment (potentially losing the current interest rate).

Any thoughts welcome.

Thanks,

Jimmy
 
2. ...holding onto apartment as rental investment (potentially losing the current interest rate).

I can comment on this point as I've recent experience.
For any bank to consider giving you a mortgage your monthly rental income will have to be at least 1.2 times your monthly mortgage repayment.

Then, the mortgage interest rate comes into play. For PTSB, they will use your interest rate. For all the other banks, they will use their current standard variable interest rate.
In my case, I've approval for €180,000 from PTSB. For the other banks, I've potential approval of €-70,000. Yes, a negative amount!
 
Strange you don't pay off the credit card each month. You've good savings. That apartment is a really really cheap mortgage. Only reason to over pay is to get rid of negative equity, but not really necessary. Good to hold onto that as rental. Your problem is the banks don't see it like that. What is the actual mortgage repayment monthly. How much would it achieve as a rental.

Maybe your best bet is a broker.

How much is the repayments on a mortgage of 270K, assuming you use your savings of 52K as deposit etc.

How much will your wife's income come down by. How much will childcare be.
 
Back
Top