Time to sell apt before it leaves neg equity?

We ve moved back to Ire and have an apartment that we have seriously outgrown and thinking we should sell it now in light of the new CB changes and all the hassle and charges that comes with being landlord.

Some background...
VAlue of property - about 190k
Lender - AIB Tracker mortgage
Amount of mortgage - 195K outstanding, monthly repayments currently 918eur
Interest rate- think its 1.5%
Marital status and kids -Married with 2 preschool kids
Salary- Husband 62k (public sector ), Im stay at home mum at present but hopeful to get back teaching in Sept
Other loans -None. Have a Credit Card but it has a zero balance.
Other assets -Car worth 12k
Savings at present -35k

We ve been renting out the apartment for the last 3 years. At present we receive a rental income of 1,100, mortgage repayment is 918.
As husband is working is Kildare , we are hoping to purchase out that direction.

I was reading on another post here that if your property is about to crawl out of NEquity and you're thinking of selling that you should indeed sell it then so as to avoid having to pay the 20% deposit. We re hoping to buy a house about the 200-220k amount.

I think our issue is we have only one wage coming in at present. So its the loan to income amount that might hinder us obtaining an amount we need.
When I do those online calculators quickly , the banks are saying they'd only lend us 170k.
My husband is 45 so it will have to be a 20 year mortgage and has only done 4 months of a year long probation period.

We're so naive to all of this and we have a appointment with AIB mortgages on Friday.
If we currently have a mortgage of circa 195 and lets say sell the apt for 185-190, can we just bring that mortgage amount over to a new property + 1% on the tracker or is it a case, we d only get 170k mortgage.

Any advice greatly appreciated. Do others thin we should go to a broker instead of approaching AIB?

Indeed we did go to one and his advice was to go interest only...he didn't seem hopeful at all and told us our situation was very difficult and somewhat unique!!! I fail to believe this so we said we d approach AIB and then maybe try another broker. Im being hopeful AIB will allow us to buy another property!

Thanks again for all comments.

I actually don't believe you are in a bad position but there are some practical steps you can take

Firstly, you're unlikely to get a mortgage until your husband's probation is up. That will mean it will be the end of the year before you can buy and also means you may be back working by then. That may allow you to factor in any salary of your own. However you should really only do that if you are perm and also you need to factor in child minding costs.

Secondly, you seem unclear as to the value of your apartment. Get is valued, ask 2 or 3 estate agents to give you a value and then you will have some clarity. Indeed, if you could sell it within the 8 months outstanding of your husbands probation, your position will be a lot clearer

Lastly, where in Kildare are you looking to live. ? You'd get a decent house in many areas for 170-200k, especially if you are prepared to travel out the county a bit

Forget about going to a broker. They will not be able to improve on anything offered by AIB.
As you already have a loan and won't be borrowing much more, I very much doubt AIB will have any problem with your husband's probation.

This is how it would work out:




I think you should be conservative with AIB. Tell them that you expect to get only €175k for the apartment and that you would like to pay around €230k for the new house. That means that you will need €220k loan approval. They will probably give that to you.

I think that with a cheap tracker mortgage, you could well afford the repayments on €220k.

Wow Brendan- Thank you so much for that detailed reply and indeed the daddyman. We will await and see what Fridays meeting with AIB brings!

HI Brendan,
Can i ask you please.
Do you know do AIB allow those who are currently renting out their house to move and take their tracker with them? I ask because when i look at their terms it says it must be your PPR...technically as we've it currently rented it wouldn't be.


Would it be harmful to go into them on friday to discuss selling and buying elsewhere or do you think it might be better to be living in the apt > 6mths and get all our bank accounts in order.

Obviously id be best to ask AIB- but that might cause difficulty.
Thanks in advance.