I am looking for some advice please.
We currently own two properties, one within 3 miles of Dublin city centre, bought for 385,000k in 2005 with a 100% mortgage and destined at that time to be a family home for a number of years. We are on a tracker mortgage and it is currently rented - the mortgage is 1350K a month and we are subsidising it by 100 euro a month. We currently owe approx 365,000k on it and we get a maximum of 260,000k should we wish to sell it I would estimate.
In 2006 I was transferred West and we purchased a house in Galway city for 420,000K. Prior to that purchase I was lucky enough to sell an apartment in Dublin and made a significant profit so our mortgage on the Galway property was 220,000k. We currently owe 200,000k on this property and our mortgage, another tracker is currently 960 euro a month.
I have a permanent position earning 77,000k pa and my partner earns approx 30,000k (not in a stable sector though so I worry about this income).
We pay 1200 a month in childcare and are both in our mid-30's. We have approx 60k in savings
I am very concerned about impending ECB rate rises which I feel will leave us very exposed with two tracker mortgages. From pervious rate rises I know that the mortgage in Dublin went up to 2080 euro put we were getting about 400 euro more in rent then, my partner was earning approx 25,000k more and I approx 15,000k more & no childcare costs, in short we were in a much better financial position to deal with it.
I am seriously considering selling our home in Galway city - we would get realistically 260,000k for it, a huge drop from what we paid but 60k more than what we owe - we are not in a position to sell Dublin as we would owe the banks almost 100k. I am considering renting for as long as it takes - previous concerns about having a stable longterm house for our children are quickly erased by worries of not being able to manage.
I suppose I wonder am I over-reacting, I just feel very exposed on two tracker mortgages and feel we should cut our losses or should we hang on and use our hard earned savings to supplement both mortgages for as long as we need and hold on to both houses - is that a better use of our savings?
Any feedback greatly appreciated
We currently own two properties, one within 3 miles of Dublin city centre, bought for 385,000k in 2005 with a 100% mortgage and destined at that time to be a family home for a number of years. We are on a tracker mortgage and it is currently rented - the mortgage is 1350K a month and we are subsidising it by 100 euro a month. We currently owe approx 365,000k on it and we get a maximum of 260,000k should we wish to sell it I would estimate.
In 2006 I was transferred West and we purchased a house in Galway city for 420,000K. Prior to that purchase I was lucky enough to sell an apartment in Dublin and made a significant profit so our mortgage on the Galway property was 220,000k. We currently owe 200,000k on this property and our mortgage, another tracker is currently 960 euro a month.
I have a permanent position earning 77,000k pa and my partner earns approx 30,000k (not in a stable sector though so I worry about this income).
We pay 1200 a month in childcare and are both in our mid-30's. We have approx 60k in savings
I am very concerned about impending ECB rate rises which I feel will leave us very exposed with two tracker mortgages. From pervious rate rises I know that the mortgage in Dublin went up to 2080 euro put we were getting about 400 euro more in rent then, my partner was earning approx 25,000k more and I approx 15,000k more & no childcare costs, in short we were in a much better financial position to deal with it.
I am seriously considering selling our home in Galway city - we would get realistically 260,000k for it, a huge drop from what we paid but 60k more than what we owe - we are not in a position to sell Dublin as we would owe the banks almost 100k. I am considering renting for as long as it takes - previous concerns about having a stable longterm house for our children are quickly erased by worries of not being able to manage.
I suppose I wonder am I over-reacting, I just feel very exposed on two tracker mortgages and feel we should cut our losses or should we hang on and use our hard earned savings to supplement both mortgages for as long as we need and hold on to both houses - is that a better use of our savings?
Any feedback greatly appreciated