Trading up - self employed & tracker

Looking for some advice on trading up and leaving a tracker mortgage...


Current value: €240,000
Outstanding mortgage: €115,000
Interest Rate: ECB +1.15% (Ulster Bank)
Repayments €700. We can also show 6months evidence of €500pm towards a loan we cleared this month.

We want to move to a bigger house with half an acre and room for a separate office/store.(possibly save rent on business premises).
From looking around we've seen a potential property with an asking price of €385,000.

Own business 10yrs+ but only taking wages past 2 years since leaving full time employment. All accounts show a steady increase over the years. All accounts are with BOi, so we're wondering if they're our best best for a mortgage?

Combined incomes €90,000 - 75% of income from own business, the rest is from a partner's permanent paye role (which is part-time )

What issues do you think we'll encounter? Do we stand a chance? Both of us are in our early 40's, 3 kids.

Thanks for any advice.

Current equity: 125k
Buy: 385k
Savings: 0?
New mortgage: 260k

You've over 20% deposit, and borrowing less than 3 times LTI, so no issues from CBI rules.

Monthly tax home: c 5,500 between you?

Mortgage repayments at 3%: 1,235
stressed at 5% over 25 years: 1,520

You'll comfortable meet affordability criteria, but might lack on evidence if you haven't been saving regularly (they will add current mortgage and the loan repayment though).

Now: where to get mortgage. You can keep UB tracker, but they add 1%. So you can have 179k at ECB + 2.25% (guaranteed for remainder of original term), and fix the rest at 2.6% for 4 years.
You should try UB first to hold onto the tracker. They'll possibly also allow a longer term as you're self employed. It doesn't matter that your bank accounts are elsewhere - you'll just have to get all your statements together - personal and business. They'll just need 6 months worth instead of 3.

Being self employed requires some additional paperwork, but nothing onerous if everything is up to date (accounts and tax affairs). UB have a list of required docs, but treat it as a starting point. They will generally need more!

Just one item on the proof of income. As self employed they will take your last two Form11 submitted to revenue, so that is 2015/2016. At least that was the case for us in KBC recently. They wouldn't use my P60 last year which was annoying. So if you didn't pay yourself much in 15/16 it could effect the affordability. I think we could have argued the case, and I did push it a little, but in our case the overall difference it made wasn't much. Could be in your case.

Thanks for the replies. We'll try Ulster bank too, thanks RedOnion. We have 10k savings but last couple of years were tighter due to materniry/unpaid leave. Things have picked up for us in last 9-10months (but business itself doing well each year - spent a lot on reinvesting into the company).

Arry thanks for the tip too, we're going to get all 2017 stuff gathered up next week and send them off to the accountant.

Does anyone think ECB is going to rise significantly over next few years and would it be worth a gamble to fix for 5 or 10yrs if we could get a low rate now?