Sell a house and carry tracker or take out new mortgage?

Discussion in 'Mortgages and buying and selling homes' started by Amand, Apr 18, 2017.

  1. Amand

    Amand Registered User

    Posts:
    13
    Submitting planning application today to build a house on an acre, being gifted by parents. We currently have two tracker mortgages with BOI:
    Mortgages: Rate Pay/month Remaining balance
    Our home: 1.25% €731.31 €188K Rent capability: €850/month
    Our rental: 1.1% €640.29 €124K Currently getting €720/month, inc to
    €850 in Oct 2017

    Current value of both houses about €125K.

    Age: 40 Age of spouse: 38

    Annual gross income: €60k for 5 days though currently taking a day parental leave a week
    Type of employment: Public sector

    Annual gross income of spouse
    : 80,000 +5k bonus
    Type of employment spouse: Private sector

    Current borrowings:
    Car loan from credit union: 6.9% Remaining: €12,500

    No credit card

    Savings and investments:

    Savings: €80k, and projected €92k by December

    Do you have a pension scheme: Yes, €164 paid in every two weeks from my salary to public pension
    Spouse: Moved job 4 months ago, has pension from previous job and can start new one when made permanent in 2 months time

    Ages of children: 7, 4 and 2 years

    Life assurance: Both have

    Question:
    New house will cost about €340k to build from start to finish including transfer costs, professional fees etc
    Should we sell a house and carry the tracker to a new mortgage or take out a third mortgage?