selling old house and taking out mortage on new

[misterfox]

Looking for some advice. I bought in the boom 2006 to be exact and was hit hard like most in the downturn, had to become one of those reluctant landlords and leave my property and move to rent a small place to keep head above water.

Anyway while house is not back up at what I bought it for it is worth approximately what's left on the mortgage.

I had interest in selling it and buying a smaller place to move back into as my own home. I wish to know if I sell and it clears my mortgage if I sign up to another am I hit paying off years of interest again to a bank who will want to make their money before you really start paying them off. I mean ideally if i could move amount owed on old to a new house and keep payments and term the same??

I just remember the several years when I bought back in the boom the interest statement made for depressing ready paying 10 times more in interest then off the principle sum. Hate to go back to that.

 

[Brendan Burgess]

Hi misterfox

Unless you have a tracker mortgage and can keep it on the new property, there is no advantage in moving the mortgage to a new property. (You can't do so anyway - they always issue a new mortgage).

You will need to read this thread to understand what is happening

A guide to mortgage repayment calculations


If you borrow €100,000 at 3%, you will be charged 3% interest or €3,000 in the first year.
If you make no capital repayments, you will be charged €3,000 again the next year.
If you pay €5,000 every year, then you knock €2,000 off the mortgage, so in the second year, you will be charged €2,940 (€98,000@3%) in the second year.