We took out mortgage for 440, its now down to 390 our repayments are 1850 per month, if we rented the house out we would only get about 1200 per month, (its in Monkstown farm) and as we want to upgrade any reasonable size house rent would be at least 1900 in the greater area + have to subsidise mortgage + pay tax on rental income.
Let's look at this again as it shows a fundamental misunderstanding about mortgages. Don't worry. You are not alone.
Mortgage|€390k|
Interest|€8,000| per year - assuming ECB + 1.25%
Repayments| €22,000|per year
Capital repaid|€14,000| per year
.
.
Rental income|€14,400
Interest paid|€8,000
Gross profit|€6,400
Tax |€4,000|
Net profit|€2,000
So what do these numbers tell us?
Renting out your current home would make a small profit for you after tax as you have such a cheap loan. You may need to adapt the figures and allow something for the cost of renting, but the overall point is that you can rent your house out without it costing you anything.
The problem for most people would be that they could not make the €14,000 capital repayments each year. But in your case, your family has the capital which they can give you each year.
So, let your house.
Borrow €14,000 a year from your family
You will be reducing your bank loan by €14,000 a year.
You will be increasing the amount owed to your family by €14,000 a year.
Your overall indebtedness won't change.
Rent a house to suit your family at €1,900 a month which is roughly what you are repaying on your loan at the moment.
However, you would still be better off staying where you are as long as possible
The real cost of your cheap tracker mortgage is €8,000 per year.
The cost of the house you want to rent is around €24,000 a year
The additional cost of moving house will be around €16,000 per year.
You would be much better off using this to start paying down your mortgage and your negative equity.