buy a house I would not really be happy with long term?
The thing I am struggling with is should I borrow a lot and put 95%+ of my savings into this new house
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If I was to pay say 450 then I would have to borrow 270 and put 180 into it myself, leaving me 10k in the bank.
What if interest rates went up 1%? What financial position would you be in then?
I would consider selling either or both houses if we need to but that assumes the prices of houses don't drop very significantly from here.
Rental income on my house would be about 1100 per month, repayments currently 900. There is a risk that I would be moved off the tracker if I rent out the house so that would move repayment probably up to 1000-1200 so that would be loss making overall.
Current lender is a bank who don't alow porting option to a new house.
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This is another complicating factor. Presumably it's Danske or Bank of Scotland.
Both want out of Ireland. There is a chance that they might sell your mortgage and the buyer might do a deal to get out of the cheap tracker.
This would argue for deferring the purchase of a new home, so that you could take advantage of any such offer.
Yes and that's something I had in mind too. But it might not happen at all so it is hard to know.
Some people also are of the view that if they sell the mortgage book on that the new company would try to get people off the tracker by for example proving the LTV no longer meets the requirements of the contract.
If both cheap trackers with Danske and you end up renting both of those houses out, then there is the potential that they will kick you off those tracker rates and put you on investment mortgage rates. May never happen but something to also bear in mind.
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