Trading up, but have ptsb tracker

Hi, Would appreciate some advice please on our situation.

We currently have a permanent tsb tracker mortgage on our home, value of house approx 240k and we are in 35k neg equity.
We also own a house in Cork worth 90 to 100k and this is mortgage free, rented out for 400 a month.
Both working, I earn 52k but at the moment on parental leave one day a week which is unpaid, husband has own business and earns approx 60k a year. Total savings of roughly 35-40k.
We have 2 kids and really want to move to a bigger house...areas we are interested in have house prices of about 450k to 500k

Not sure what is best way for us to go about financing this, selling the mortgage free house will give us a deposit and sort out negative equity but are we mad to lose this security. Are there any other suggestions?
Also how much do you think we could borrow realisitically?

You should sell the house in Cork so that when it's time to move, you have ready cash.

You can rent out your current home and keep the tracker. Then rent another house.

Alternatively stay in your current house a few more years. You will clear the negative equity and start paying down the mortgage.

It's possible that ptsb will offer some sort of deal for early repayment of mortgages in whole or in part. To take advantage of this, it would be handy to have €100k cash instead of €100k tied up in a house.

BoI and UB alllow borrowers with trackers to trade up and retain their trackers for 5 years, at a slightly higher rate. I think it's worth staying in your current house a few more years to see if ptsb comes up with something similar.

I suspect you'd be lucky to get a €350K mortgage (although the KBC mortgage calculator might suggest that you'd get closer to €500k). If you really want to move to a bigger house, and unless you're happy with a rent-rent situation, I expect that you will have to sell both houses and use your savings in order to finance a house in the price range you refer to.

YEs thanks for the advice Brendan & michaelm, lots to consider. Went to see someone in ptsb and they said an announcment was immenient regarding moving with tracker mortgages which may help a lot of people.

okay some developments on above, would appreciate some feedback on those in the mortgage know....
Ptsb tracker mover mortgage to come on board in a few weeks, however a house we really like for 370k has come on market in last few weeks and has a bid on it. EA has said our own house should fetch 250k or a little more, and should sell very quickly. So our neg equity should be 25k, savings of 30k and loan from parents of 18k, plus house in Cork which we now hope we don't need to sell. What do u think our chances of getting appoved for 333k would be, we really want to make a bid on this house asap, obviously pending approval? Only black mark against us I can think of is that we had credit card balance left unpaid, stupidly just put on long finger, just paid it off now, was 2k.