Should I bother trying...?

PetrolHead

Frequent Poster
Messages
300
So, I know there are many, many deciding factors, nuances and points of consideration, but I was hoping to get some very top level guidance from people who know far more than I do. Essentially, I've seen a house my wife and I really, really like, but I'm wondering if we would even be considered for a new mortgage to facilitate the move.

I earn €58k
My wife is not working, stays home with two children (6 & 2)
No other debts
Current mortgage balance €220k
Current house value €270k
Cash in bank €30k
Advertised price of house we're looking at €290k

Would I even be considered? Is it even worth progressing or am I 'stuck' where I am?

Thanks for your time and comments.
 

mikros

New Member
Messages
1
Taking the €50k equity and €30k deposit you have, you would need a mortgage of at least €210,000 to be able to buy. That's ignoring the various fees you would need up front- estate agent, legal fees, stamp duty - for selling and buying which could be anywhere from €10 - 15k.

To qualify for a mortgage of €210,000 you would need a gross income of least €60,000 / year to be within the 3.5 loan to income limits. So based on your current income you are unlikely to qualify. The bank would also take into account your dependents (wife and 2 kids) on your ability to repay which would likely mean you would not get the full 3.5 income.

Based on those figures I don't think you will get mortgage approval I'm sorry to say.
 

Brendan Burgess

Founder
Messages
37,501
Even if you were to get mortgage approval, it would be very difficult to choreograph.

1) You would have to get an offer accepted on the new house despite not being in a position to buy it.
2) You would have to go sale agreed on your own house very quickly.
3) You would have to actually close the sale of your own house before buying the other.

You could easily fall between the gaps on this one.

Brendan
 

PetrolHead

Frequent Poster
Messages
300
Even if you were to get mortgage approval, it would be very difficult to choreograph.

1) You would have to get an offer accepted on the new house despite not being in a position to buy it.
2) You would have to go sale agreed on your own house very quickly.
3) You would have to actually close the sale of your own house before buying the other.

You could easily fall between the gaps on this one.

Brendan
Yes - very cognizant of this ballet.... However, is this not the situation for anyone moving house?
 

PetrolHead

Frequent Poster
Messages
300
Taking the €50k equity and €30k deposit you have, you would need a mortgage of at least €210,000 to be able to buy. That's ignoring the various fees you would need up front- estate agent, legal fees, stamp duty - for selling and buying which could be anywhere from €10 - 15k.

To qualify for a mortgage of €210,000 you would need a gross income of least €60,000 / year to be within the 3.5 loan to income limits. So based on your current income you are unlikely to qualify. The bank would also take into account your dependents (wife and 2 kids) on your ability to repay which would likely mean you would not get the full 3.5 income.

Based on those figures I don't think you will get mortgage approval I'm sorry to say.
Doesn't look good.... I was pessimistic with the numbers I put up, but still.... frustrating....
 

Brendan Burgess

Founder
Messages
37,501
However, is this not the situation for anyone moving house?
Indeed it is, but it's easier to do if you have a lot of flexibility.

If you are borrowing at a comfortable level, then you can still handle it if you don't get as much as you expected for your own house or if the new house is a bit more expensive than you expected.

When you are at the limits, there is no capacity for error at all. A small reduction in the price of your own house would scupper the whole deal.

Brendan
 
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