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

    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

    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?