Hoping for some insight. (All $ is euro, typing on an Aus keyboard).
I drew down a $450k 25 year tracker mortgage with Ulster Bank in 2008- so 17 years left to go. ECBR+ 0.75% for term 80% LTV. Interest only for first 5 years. The purpose of the loan was to purchase a buy to let 2 bed apt - $20k parking space bought outright but I lived there for the first 3 years and it's been rented out since. It's an excellent location in city centre Dublin and prices have crept up there so I would have little or no neg equity as it stands today. There is a high demand for rental properties in the area.
Rental income does not cover the mortgage and other costs- shortfall of approx 800 per month. This is because I'm paying back the principal over 20 years so current monthly repayments are $2,029. This will remain the case as I increased the rent in January of this year so won't be allowed to do so for another 2 yrs (unless tenants move out).
Here's the thing. My family and I have been living (renting) in Australia these past 5 years and plan to move home this year. We now have two small children and the apartment is not suitable for us to live in.
Under the new lending rules we would be unlikely to be in a position to purchase a property in the area we want to live in (near family) for another few years as we will be relying on my sole income as my husband is self employed with irregular income. This means we will be paying rent of $1800 to $2000 per month plus the $800 shortfall on the apartment. As I see it our options are.
1. I have considered the option of porting the mortgage under the UB Tracker Mover product but I'm not sure yet whether this is available to us as the purpose of the loan was buy to let and the website says it's available to "personal" loans only - but it is essentially our ppr. I can't get in touch with them as they'll only discuss in person in a branch. So not exactly an option as such yet.
2. Keep the tracker and keep paying rent until we could qualify for another mortgage. This may be several years away.
3. Take the short term view and sell the apartment and keep renting/saving. This way we haven't got the $800 shortfall and we're not under pressure from increasing interest rates. I'm loathe to do this as I know the tracker is worth alot to us and I'm not sure we'd be much better off.
I'd really appreciate input. I've been researching and pondering this for weeks. Would really love to keep it AND be in a position to purchase a family home but this currently seems unattainable.
Thanks.
I drew down a $450k 25 year tracker mortgage with Ulster Bank in 2008- so 17 years left to go. ECBR+ 0.75% for term 80% LTV. Interest only for first 5 years. The purpose of the loan was to purchase a buy to let 2 bed apt - $20k parking space bought outright but I lived there for the first 3 years and it's been rented out since. It's an excellent location in city centre Dublin and prices have crept up there so I would have little or no neg equity as it stands today. There is a high demand for rental properties in the area.
Rental income does not cover the mortgage and other costs- shortfall of approx 800 per month. This is because I'm paying back the principal over 20 years so current monthly repayments are $2,029. This will remain the case as I increased the rent in January of this year so won't be allowed to do so for another 2 yrs (unless tenants move out).
Here's the thing. My family and I have been living (renting) in Australia these past 5 years and plan to move home this year. We now have two small children and the apartment is not suitable for us to live in.
Under the new lending rules we would be unlikely to be in a position to purchase a property in the area we want to live in (near family) for another few years as we will be relying on my sole income as my husband is self employed with irregular income. This means we will be paying rent of $1800 to $2000 per month plus the $800 shortfall on the apartment. As I see it our options are.
1. I have considered the option of porting the mortgage under the UB Tracker Mover product but I'm not sure yet whether this is available to us as the purpose of the loan was buy to let and the website says it's available to "personal" loans only - but it is essentially our ppr. I can't get in touch with them as they'll only discuss in person in a branch. So not exactly an option as such yet.
2. Keep the tracker and keep paying rent until we could qualify for another mortgage. This may be several years away.
3. Take the short term view and sell the apartment and keep renting/saving. This way we haven't got the $800 shortfall and we're not under pressure from increasing interest rates. I'm loathe to do this as I know the tracker is worth alot to us and I'm not sure we'd be much better off.
I'd really appreciate input. I've been researching and pondering this for weeks. Would really love to keep it AND be in a position to purchase a family home but this currently seems unattainable.
Thanks.