Switching Mortgage I have with Sister. "Both Married now."

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gar32

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So I am hoping someone can help.

My Sister and I have a mortgage for a small apartment where is now lives. It's worth about €130K and mortgage is around €95 on it. It is with IBRC now which will not be dropping rates like the 6 other banks the Government are talking too.

My sister is Married now and I have also married in the mean time. Other issue is I now live outside the country but have my own apartment without mortgage which I could put up for collateral. (Its rented out)

Would any bank be willing to take on the mortgage as is with my sister & I on it?

Thanks in advance.


Gar32
 
Your LTV ratio is 73% so you come into the category of <80%.

What rate are you paying to your lender now? IBRC had the cheapest SVR for a long time. Have the new owners upped the rates? I hadn't heard that they have done so.

As your mortgage is quite small, the savings may not be enough to justify the legal costs of switching.

It would make like a lot simpler if she bought your share in the apartment. Have you considered that?

Alternatively, you could sell the apartment and pay off the mortgage.

Brendan
 
Thanks for the reply Brendan I know your busy :)

We have the Variable rate which I am unsure will be dropped along with other banks. As for my sister buying me out. Not an option as she like most Irish people are finding hard to get by without taking on more of a mortgage. We wanted to have a investment for the future but times got hard & my sister had to move into apartment when she lost her job. Lucky back working now. Fingers crossed she finds somewhere bigger and we can rent it out so when the mortgage is paid off we can have a small income for our old age.

I have checked the banks web sites and will try with Ulster Bank.

Thanks again Brendan.
 
OK so maybe a sale would be better.

If things get better and we sold for say €160K what would the Tax be on it ? Clearing statement etc and all local & yearly Property tax has been paid.

65K after after mortgage was paid.

4K for Solicitor

We bought for €220 K so no Profit.
 
No profit - no tax.

You should not be paying €4k for a solicitor. I would have thought that it should be €2k maximum.

Don't worry about rate cuts. What matters is what actual rate you are paying now. Do you know what that is?

Where would your sister live if you sell it? If she does not have the means to get a mortgage to buy you out, she won't be able to get a mortgage to buy somewhere else.

Brendan
 
gar32 said:
Fingers crossed she finds somewhere bigger and we can rent it out so when the mortgage is paid off we can have a small income for our old age.

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Click to expand...

Oh I don't know about this. Messy.

Who is paying the mortgage? You said she is married, is her husband working too? How much would that apartment rent for? Who is paying all the running costs, insurance, LPT etc. Are you doing tax returns.

Presumably your sister will want to move out if she is planning on children?
 
My sister is Paying as I have paid the half we borrowed. She also pay's for all costs as I am getting no benefits for my investment so far. The husband only has Part time work so between them no way to buy in Dublin where they both work. The way I see it we have 2 ways to go. She stays there until she can move out. (Child on the way) & we rent it. (€900) a month before tax & costs. Or we sell soon as Prices in the block have hit €150 k for a 1 bed room lately. Thanks for the advice. Would there be a 3rd Option I have not come up with?
 
So I know I left thing's unanswered but I found out I am on 4.4% which is the last Irish Nationwide variable rate before it was nationalized. I called Mars Capital who say they just left rates as is and have no plans to change them. So I know AIB & Ulster are the cheapest variable these day but would they let us move the mortgage and how hard would it be to move from Mars?

Thanks in advance
 
It seems that your sister and her husband and forthcoming child have nowhere else to live? So you have decided to keep the apartment.

So the only question is whether you can switch mortgage. It might be messy as you have both since married and so they might want all four of you on the title deeds and the mortgage. That would be very messy.

The only thing is to apply to the lenders. They are all advertising heavily for switchers.

The other thing you could do is for you to buy your sister's interest. But as a non-resident, you might end up paying a higher rate. And that would be messy as the rent paid by your sister would be taxable in your hands.

Brendan
 
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