Considering moving a Tracker or can we? Best advice?

[Dustyman]

I did start a thread on this before and moderator please feel free to move.
I
am re-posting this here with updated info and respectfully hope I can again get advice; Thank you in advance.

We are fortunate and thankful to have a place of our own and to have cash in hand too. But we badly want to move now, expanding family etc.

We sown & live in a 3 Bed Duplex Apartment; Value E110K

We have a KBC Tracker Mortgage; E128k owing.
(Negative Equity c E18k)

Current mortgage monthly repayment is; E760
Estate agent estimate monthly rent attainable if apt rented; E850-E900

We have cash on hand; E237k

New House cost (We really wanna buy this house!); E395K

Loan required (if keeping apt); E158k

Loan required (if NE carried due to sale of apt.); E176k


Q's?
Should we sell the apartment and take the hit?
Would KBC allow us to sell it?
Could we keep our tracker and move it to new home?
Will we lose our tracker?
Can we get a NE 'trade up' mortgage?
Should we stay with KBC?
Not sure what to do! Hold out etc.

What would be the best option for us?

Any advice much appreciated and thanks in advance.

Regard's,

DM

 

[Brendan Burgess]

New House cost (We really wanna buy this house!); E395K

Loan required (if keeping apt); E158k

It would depend on your income. But I would imagine that most banks will lend to you.

You need to give the rental figures for the apartment and the interest rate.

But yes, it generally makes sense to keep an investment property with a cheap tracker which is around the same value as the property.

Brendan

 

[luckystar]

As brendan says it does depend on income. But I’d be considering selling the apt and porting the tracker to the new house. Of course you can sell.., once you have the funds to cover the NE (or an agreement with the bank for the shortfall)

 

[Dustyman]

It would depend on your income. But I would imagine that most banks will lend to you.

You need to give the rental figures for the apartment and the interest rate.

But yes, it generally makes sense to keep an investment property with a cheap tracker which is around the same value as the property.

Brendan

Income at present is around E54k (includes overtime etc).

My wife will be returning to work soon so combined income then will be a min of E84k,
We will make the application when my wife returns to work shortly (Covid affected my wife's employment).

Local rental figures for rental of such an apartment local are around E900-E1k a month. However I know there will be rental income (tax) from Revenue) charged on this too. I'm not sure what this will be.
I expect that in around 3 years time the NE will be gone, hopefully.
I would expect we will get E900 rental income a month for the property.
E640 per month is our mortgage currently.
Management fees are around E125 per month.
If we employ a letting agent to manage the letting, (which we will if we let the property), will cost around E125 per month (estimate).
Therefore apartment should cost us around E890 per month.

 

[Dustyman]

As brendan says it does depend on income. But I’d be considering selling the apt and porting the tracker to the new house. Of course you can sell.., once you have the funds to cover the NE (or an agreement with the bank for the shortfall)

Will a 'trade up NE mortgage' with KBC be our best option then? Will KBC let us keep/move our tracker?? I have a feeling they won't?