Financial Implications of moving to bigger home

Newbie!

Registered User
Messages
894
There is a thread in this forum about those financial factors which affect one choice of property purchase. In that case it relates to an investment property but it got me thinking to my own situation and I would appreciate some thoughts from you.

There are many many young families living in homes which are now too cramped as their families begin to grow. Most of these families are, like us, in negative equity.

We are currently on a tracker mortgage and even with an overpayment, out monthly repayment is €1400. This leaves us with sufficient money each month to save and live a comfortable lifestyle. We are know trying to get ourselves to a position where we can sell our own home, use our savings to write off the negative equity of our current house and then buy something more suitable within commuting distance of dublin.

The homes we have been looking at so far are modest 3-4bed semi detached homes for ~350k. Interest rates on a new mortgage for this sum will be about €1950 per month. This is a huge undertaking and one which is difficult to accept as childcare costs increase (more children). Neither of us will ever have the option of working a shorter week as the reduction in take home pay would cripple us. I'm not sure what sort of advice I really want here, I suppose I just want to know if its madness to find a home and location that works for us but could lead to financially tougher times or live somewhere that's too small and we dont really like but have the freedom of having some disposable income? There must be other people in the same boat. What would you do/have you done?
 
Stop overpaying your tracker - there may be a possibility of transferring it to a new house.

With the proposed new rules on mortgage lending not having a large (20%) deposit saved will be a far larger obstacle than having a negative equity loan when it comes to looking for a new mortgage.

Firstly, and most importantly, stop overpaying the tracker!
 
Stop overpaying your tracker - there may be a possibility of transferring it to a new house.

With the proposed new rules on mortgage lending not having a large (20%) deposit saved will be a far larger obstacle than having a negative equity loan when it comes to looking for a new mortgage.

Firstly, and most importantly, stop overpaying the tracker!

Isn't the new 20% lending rule for FTB's only? Also, we have to jump through hoops applying to the bank to stop our overpayment and given that we'd like to move early-mid next year, its probably too late to bother. I appreciate and understand your comments though.
 
If you're hoping to move early-mid next year you should already be viewing and bidding on houses.
 
young families
too cramped
in negative equity.
a tracker mortgage monthly repayment is €1400.

This leaves us with sufficient money each month to save and live a comfortable lifestyle.

Interest rates on a new mortgage for this sum will be about €1950 per month.
within commuting distance of dublin.
This is a huge undertaking and one which is difficult to accept as childcare costs increase (more children).

. What would you do/have you done?

You've enough posts to know that you should put up all the financials, on the money makeover section.

Also how cramped are you now, size of family, size of future family, childcare costs, how bad is the commute. Then we will be able to comment on what we might do or have done.
 
Thanks Bronte. I suppose it was more of a philosophical question or just my ramblings on an evening of despair. I have previously completed the money makeover section and received advice based on the info given.
 
Back
Top