Negative Equity, want to move

7

7777_Y

Registered User
Messages
7
Hi there

We have a 4-bed detached home in a rural part and want to move
Owe - about 290k
Interest - 1.6% tracker
Value - about 230k
Lender - Haven mortgages

Status - Married, combined income of 145k, savings 16k, regularly saving 2k per month now, no kids, 2 car finance loans, no credit card bills or other debt.

We are looking to move back up closer to Dublin, I know we need about 10% for deposit but what are the chances of a Lender taking us on? We got married last year and used a lot of our savings for wedding/honeymoon etc so building them back up again and we bought 2 new cars last year as existing cars were on the way out so used some savings as deposit too.

1. Are we stuck with Haven or can we choose another lender?
2. We want to downsize to a 3-bed around the 300k mark max next year, we plan to have around 40k in savings by this time next year and want to put existing home on market.
3. Do you think we have a chance to move, we really thought we were stuck here but since negative equity mortgages came about there maybe hope.

Thanks for listening
 
7777_Y said:
We got married last year and used a lot of our savings for wedding/honeymoon etc so building them back up again and we bought 2 new cars last year as existing cars were on the way out so used some savings as deposit too.
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If you wanted to move, you should have deferred or cut down on a lot of that expense.

You actually bought new cars while you were in negative equity and thinking of moving?

Brendan
 
Thanks Brendan, yes aware of that. So do you think we won't get approval based on that? I appreciated we should have kept savings but were were together 13 years and marriage was long overdue ;-)
 
From a quick observation of your requirement and financial position you are unlikely to get approval for the level of mortgage you need at this time. Savings are way too low and while your income is high the repayments on the 2 new car loans are also going to restrict your surplus income. Realistically you should consider postponing this decision for about 2 years. The 2 new cars were not the wisest decision you made as per the earlier response!!
 
Thanks Brendan, even with the 2 loans we can comfortably put €2,000 per month into savings as well as pay all bills and existing mortgage of €961 per month, If we had 41,000 in savings this time next year I would have thought it maybe possible to move then, Thanks for your insight, gives us a lot to think about, cutting back a little we could prob push savings to €2,500 per month so may look at that.
 
Thanks Brendan, yes was always going to be next year as at a min we would need 30k for 10% deposit + 7k for costs etc and we need something for general tidy up if needed on anything we buy. So plan is to put house on market next March 2017 and by the time we sell have between 40k-50k saved. Hopefully a lender would look at us then.
 
10% deposit applies to 1st time buyers. However the 20% rule applying to subsequent purchasers does not apply to those in negative equity. As you will be trading up I suspect that your bank will take into account the level of deposit available to you at application time!
 
7777_Y said:
Thanks Brendan, yes was always going to be next year as at a min we would need 30k for 10% deposit + 7k for costs etc and we need something for general tidy up if needed on anything we buy. So plan is to put house on market next March 2017 and by the time we sell have between 40k-50k saved. Hopefully a lender would look at us then.
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That sounds like a plan. I would also suggest you pay off the car loans so that you don't waste any more money on interest and thereby increase the amount you save. Watch out for the small print though.

Also agree with you saving in addition 2500 instead of 2000. One year of living frugally should do it.

Congratulations on the marriage after so long, and best wishes for your future.
 
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