Devonwhite
Registered User
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Hi, just looking for some advice on here in relation to trying to move out of our current home that we are in negative equity on. We purchased the house in 2006, and due to an expanding family, really need to try and move to a larger property. The outstanding loan on our current property is €215,000 and an estimate of current market value is in the region of €140,00 so negative equity is €75k.
My current salary is €70k per year, permanent PAYE private sector worker. My wife qualified as a teacher 4 years ago and is not permanent although has been fortunate enough to have obtained temporary contracts each year earning annual approx €35k. We have savings put together of €50k.
Last year we were gifted a half acre site locally that we would be confident of getting planning permission if we proceeded with an application. We are both keen on trying to build but obviously the negative equity is a stumbling block. My question I suppose is what is the best option open to us and will it be possible to obtain a self-build mortgage considering our details just outlined and the fact my wife is not in a permanent position ? What kind of loan amount would be achievable ?
I would be reluctant to go down the road of renting our current property and would rather be rid of it if possible. Another question is around our savings, would a bank look to use all our current savings to reduce the 75k negative equity before approval of a new loan ? Is it possible to leave some level of savings when trying to trade up with negative equity ?
Thanks
My current salary is €70k per year, permanent PAYE private sector worker. My wife qualified as a teacher 4 years ago and is not permanent although has been fortunate enough to have obtained temporary contracts each year earning annual approx €35k. We have savings put together of €50k.
Last year we were gifted a half acre site locally that we would be confident of getting planning permission if we proceeded with an application. We are both keen on trying to build but obviously the negative equity is a stumbling block. My question I suppose is what is the best option open to us and will it be possible to obtain a self-build mortgage considering our details just outlined and the fact my wife is not in a permanent position ? What kind of loan amount would be achievable ?
I would be reluctant to go down the road of renting our current property and would rather be rid of it if possible. Another question is around our savings, would a bank look to use all our current savings to reduce the 75k negative equity before approval of a new loan ? Is it possible to leave some level of savings when trying to trade up with negative equity ?
Thanks