Hi, would love some advice on our situation
Married, 2 children.
Salary 1 = 70k
Salary 2 = 25k
Savings = 20k
Both permanent private sector
Outstanding Mortgage = 235k on a house worth (probably) 135k. Tracker with EBS (Never missed a payment).
No outstanding loans or credit card bills, very clean credit record.
Childcare costs = 500 euro per month
We have planning permission to build our own house on a site that we own. We are now at a point where we need to decide if we should sell up our current property at a huge loss (approx 100k) and apply to carry that negative equity with us to our self build, or to rent out our current property and apply for a new second mortgage for our self build (cost of build = 200k, so would look for a mortgage for approx 170k and would build savings to 30k). Our current house is in a very good rental area (although have calculated that will likely cost us at most 5k per year to keep taking into account any shortfall we have to pay, any interest on the rent and any upkeep of the property) so this option if financially sound, could work out for us.
Would love to hear some advice on whether we should sell and move the NE, or rent out our current house and apply for a second mortgage.
Thanks in advance!
Married, 2 children.
Salary 1 = 70k
Salary 2 = 25k
Savings = 20k
Both permanent private sector
Outstanding Mortgage = 235k on a house worth (probably) 135k. Tracker with EBS (Never missed a payment).
No outstanding loans or credit card bills, very clean credit record.
Childcare costs = 500 euro per month
We have planning permission to build our own house on a site that we own. We are now at a point where we need to decide if we should sell up our current property at a huge loss (approx 100k) and apply to carry that negative equity with us to our self build, or to rent out our current property and apply for a new second mortgage for our self build (cost of build = 200k, so would look for a mortgage for approx 170k and would build savings to 30k). Our current house is in a very good rental area (although have calculated that will likely cost us at most 5k per year to keep taking into account any shortfall we have to pay, any interest on the rent and any upkeep of the property) so this option if financially sound, could work out for us.
Would love to hear some advice on whether we should sell and move the NE, or rent out our current house and apply for a second mortgage.
Thanks in advance!