Changing from Family Home Status to BTL Query on Family Home

Edenbridge14

Registered User
Messages
19
Currently in a 5 bed detached house worth 550,000
Tracker mortgage on property with BOI of 68,000 - 8 years left - repayments are 612 a month
2 adult children living in the home too attending college
House has a granny flat on side of property which is rented to a family member and generates an income of 8,000 and covers current mortgage comfortably all above board and is a HAP tenant

I'm looking to purchase another property as i'm only working fulltime last 5 years due to rearing my kids etc. and my pension is non existent.
The thing is my husband is 67 and i'm 46.
I went to BOI to query about equity release and their conditions was a minimum of 5 years to a maximum age of 70
So thats ruled us out due to the hubbys age

We have over 400 k equity in the family home
Looking to release 50k as a deposit on a BTL for a house worth in region of 200,000 and i can't get it!!
I am a public service worker on 50k so in permanent full time employment too

Is there anyway around this

Would it mean surrendering my Tracker and changing the mortgage on the 'family home'
Or transferring the property to my name only obviously with a supporting legal clause that i'm not going to kick hubby out etc
 

Monbretia

Frequent Poster
Messages
1,874
Transferring house to your name wouldn't help as bank will insist on joint mortgage anyway once it's the family home so I'd say forget that plan! :)

I presume what you need to do is a top up to the mortgage which is a separate loan at todays rates and leave the tracker portion alone, I assume the existing mortgage has your husband's name first on mortgage. I know when I was in banking, a long time now admittedly, we always took the age of the youngest person to calculate term but that meant that person was then the first named, easier to do with a new mortgage whereas yours is already up and running in it's existing format.
 

Brendan Burgess

Founder
Messages
42,159
Tracker mortgage on property with BOI of 68,000 - 8 years left - repayments are 612 a month
Would it mean surrendering my Tracker
I don't know the answer to your question, but if you have to surrender the tracker, that won't cost you very much.

Let's say you have a tracker at 0.5%. You can borrow at 2.5%, so it's saving you just 2% this year.

2% of €68k is €1,400. and it will fall away to nothing over the next few years as you pay down the capital. So it's not material.

Brendan
 

Brendan Burgess

Founder
Messages
42,159
i'm only working fulltime last 5 years due to rearing my kids etc. and my pension is non existent.
This is the key. Why don't you just max your pension contributions?

You already have a €550k stake in the property market. Increasing that is very risky with your income and combined ages.

Brendan
 
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