best place to purchase mortgage with existing tracker

N

noraB3

Registered User
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Hi there,
we bought at the peek an apt, we have a tracker with KBC. Now we want to buy a house but dont know what the best deal with having a tracker already with KBC.

We have 2 options
1) sell apt and buy new house and get new mortgage

OR
2) rent apt (which will easily rent) and buy new house - hopefully get a second mortgage.

We dont want to loose our tracker, and I dont want to sell the apt as we will loose money on it and we will easily rent.
So has anyone any advice esp if they had a similiar situation?

Thanking you for your advice
 
Don't forget that with Option 1, you can sell the apartment buy a new house and move the tracker to the new house. You will pay an additional 1.25% on the tracker element.

So, if you are paying ECB + 0.75% now, you will be paying ECB +2% on the new mortgage.

That is usually the best option.

But if you want views on whether or not to keep the property as an investment, you would need to give a lot more information
Amount of mortgage
Rate
Value of property
Potential rent and expenses.

Your income
Your savings
The price of the new house.

Brendan
 
Thanks for responding. Yes would have deposit for 2nd home depending on price obviously.

Amount of mortgage - 220K left on mortgage
Rate:1.15%
Value of property - 280K
Potential rent and expenses. - 1300 per month and need to pay annual fee for property management company 800 pa

Your income - total 125K combined
Your savings - 250K
The price of the new house. - 550K

whats your thoughts / advice?
 
It seems fairly straightforward. Move your tracker to the new house and your position will be as follows:

upload_2016-11-27_21-56-5.png


You should not keep your existing house, as you would have total property of 830k which is too much on an income of €125k, even if part of it is funded by a very profitable tracker.

Brendan
 
Just to add to the excellent advice here, I have been told by multiple banks that you are not eligible for a trader-up/movers mortgage if you do not sell your existing home when buying a new property.
Your mortgage on the new property would be treated as an investment/second home mortgage, is what I have been told, even if you use it as your primary residence.

This severely limits the mortgage products available to you. Or that has been my experience.
 
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