Trading up - advice w/ calculations

M

mickaxe

Registered User
Messages
37
Morning,

I would appreciate it someone would run over my calculations here to see if I have missed something or if my figures are incorrect.

Calculations assume purchasing second hand property @ €285,000

Estimated selling price of current home €220,000.00
Outstanding mortgage €130,000.00
Equity €90,000.00

Selling costs
estate agent €2,860.00
advertising €250.00
Legal Fees €1,600.00
Total €4,710.00
round up €5,000.00

Total €5,000.00


Buying costs
stamp duty @ 5% €14,250.00
structural survey €300.00
legal fees €1,600.00
valuation fee €150.00
Mortgage Land Registry €130.00
Land Certificate & File Plan Folio €50.00
Search Fees €70.00
Land Registry €500.00

house improvements (new house) €10,000.00

total €27,050.00


clear other debts
credit card €3,000.00
personal loan €17,500.00
overdraft €1,200.00
credit union €4,500.00

total €26,200.00

remaining equity €31,750.00


shortfall @ €285000 €253,250.00


Mortgage to apply for €253,250.00

Thanks in advance......................
 
Hi mickaxe,

have double checked the figures and the only one out is stamp duty its actually €14,250 not €15,000. A difference on €750 not much really.

Anyway this option seems like the ideal solution to your growing debts. You appear to have a number of significant loans that must be really putting pressure on your cashflow. Obviously by consolidating these into the new mortgage your new monthly repayment should be alot easier to afford.

However one caveat emptor i would raise is this, your mortgage is nearly doubling from €130k to €254k. Just crunch your numbers and ensure that you can afford the additonal repayments. also bear in mind that interest rates are more than likely to keep rising.

however IMHO judging by your current debts i would reckon you could afford the new monthly payment as you must be spending quite a sum servicing the existing debts such as credit card, credit union, personal loan.

In regards to the new house it is an excellent option but last thing i would do is list out all your incomings and outgoings at the moment and do the same for what they woule be if you put the plan into full action and see what positive effect it would have on your finances.

Like i siad difficult to advise without all the figures but looks good to me.

Best of luck and keep checking the best buy forum when goign through with your transactions (with bank, solciitors, ea, etc)
 
would you consider purchasing in a new build as then you would not have any Stamp duty costs?
We did this and it helped keep down the costs of the move. We moved from having a mortgage of 23k to 180k so can relate to taking on a new bigger mortgage but if you can afford the repayments and stress test them to include a 1-2% interest rate rise then you should be ok. Bear in mind that clearing the smaller lifestyle loans is only good if you then have a savings scheme in place to save for the next purchase and so don't slowly but surely build up further debt. Good Luck.
 
Thanks for all of your replies.

johnnybegood
I will be paying roughly the same with this new mortgage amount as I am now for current mortgage/loans so I will be much happier putting that money into a new home for my family instead of servicing debts. I have been offered 3.14% for first two years of the mortgage which improves things

charliec
good to hear I have got reasonable legal rates

fobs
that's something we should give serious consideration to

thanks again
 
Sarah W said:
Solicitor fees would be considerably less using REA........

Sarah

www.rea.ie
Click to expand...

and any number of other Mortgage Brokers, such as [broken link removed], , etc, etc.
 
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