M
MissRibena
Guest
Hi everyone
Am trying to get it clear in my head what my options are and what the consequences of each would be. Any help would be great.
Goal: To buy the house I have falline love with and be debt-free.
Problem: My house is only just on the market and may not sell quickly (it had been on the market for ages when I bought it 5 years ago). This house is valued at €230,000 by auctioneer but I would be happy enough with anything exceeding €200,000. There is €59,000 left on the mortgage.
The new house is €150,000. Stamp duty is €4,500. Estate Agent €6,000 approx. Solicitor €2900.
So breakeven is €222,400.
I will need to borrow for the deposit of €15,000 as all my savings are in SSIA and use proceeds of the sale to pay this back asap. I was thinking that (depending on rate etc) that if I don't get the breakeven price for my house, and the shortfall is less than say €10,000, to use this loan as a "mortgage". It could be easier and more cost effective (solicitor and stamp duty wise), or am I missing something?
What if my house doesn't sell quickly and there are no contracts signed on the new house (thus ruling out bridging finance)? I could roll the €15,000 into a new mortgage on the new house but I don't fancy having two mortgage and the huge repayments (even if the bank would approve it). How about an endownment mortgage? Am I right in thinking that I would only have to repay interest and then a lump sum? Can you get these on a temporary/variable basis?
Are there any other options available to me?
Thanks in advance
Rebecca
Am trying to get it clear in my head what my options are and what the consequences of each would be. Any help would be great.
Goal: To buy the house I have falline love with and be debt-free.
Problem: My house is only just on the market and may not sell quickly (it had been on the market for ages when I bought it 5 years ago). This house is valued at €230,000 by auctioneer but I would be happy enough with anything exceeding €200,000. There is €59,000 left on the mortgage.
The new house is €150,000. Stamp duty is €4,500. Estate Agent €6,000 approx. Solicitor €2900.
So breakeven is €222,400.
I will need to borrow for the deposit of €15,000 as all my savings are in SSIA and use proceeds of the sale to pay this back asap. I was thinking that (depending on rate etc) that if I don't get the breakeven price for my house, and the shortfall is less than say €10,000, to use this loan as a "mortgage". It could be easier and more cost effective (solicitor and stamp duty wise), or am I missing something?
What if my house doesn't sell quickly and there are no contracts signed on the new house (thus ruling out bridging finance)? I could roll the €15,000 into a new mortgage on the new house but I don't fancy having two mortgage and the huge repayments (even if the bank would approve it). How about an endownment mortgage? Am I right in thinking that I would only have to repay interest and then a lump sum? Can you get these on a temporary/variable basis?
Are there any other options available to me?
Thanks in advance
Rebecca