Trading Up Mortgage

D

dino

Registered User
Messages
157
Hi,
I am viewing a house next week that I am very interested in buying. My girlfriend lives with me for the last year but I'm not sure whether we should get a mortgage together or if I should just get a sole mortgage.
I am about to put a rental property on the market for €230k, no mortgage. I have the 20% deposit saved so after the rental property is sold I will have a mortgage of €100-120k. What is the best way to handle this move? I would prefer to keep my PPR until after I move to the new house so that I am not stuck renting for a few weeks/months. I spoke to one mortgage provider today who said I would have to have the properties sold before the drawdown of the mortgage could happen. This seems very restrictive...
 
dino said:
I spoke to one mortgage provider today who said I would have to have the properties sold before the drawdown of the mortgage could happen.
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Hi, did they tell you that before or after you provided details of your income?
 
Your post is a bit confusing...

dino said:
My girlfriend lives with me for the last year but I'm not sure whether we should get a mortgage together or if I should just get a sole mortgage.
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Doubt that anybody here is going to be able to answer that one for you!

dino said:
I am about to put a rental property on the market for €230k, no mortgage.
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So this is a second property that you own in addition to your PPR?

dino said:
I would prefer to keep my PPR until after I move to the new house so that I am not stuck renting for a few weeks/months.
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If you're selling a rental property to fund the purchase of the new property then what's the problem?

dino said:
I would have to have the properties sold
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So you're selling two properties? The PPR and the rental property?
 
Sorry, I was probably driven to distraction by the young mortgage advisor I spoke to in the BOI Call Centre. I've decided to book an appointment with the Mortgage person in my local branch.
I will eventually be selling both my PPR and the rental property. I hope to advertise the rental in the next fortnight so that should sell quick and align with the new house purchase.
 
dino said:
I hope to advertise the rental in the next fortnight so that should sell quick and align with the new house purchase.
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Don't forget to account for CGT that may need to be paid on the sale of this property and when it needs to be filed/paid:

Capital Gains Tax

Capital Gains Tax is charged on the capital gain or profit made on the disposal of an asset. Some assets are exempt from Capital Gains Tax. Find out if you are liable for Capital Gains Tax.
www.citizensinformation.ie www.citizensinformation.ie
 
dino said:
Sorry, I was probably driven to distraction by the young mortgage advisor I spoke to in the BOI Call Centre. I've decided to book an appointment with the Mortgage person in my local branch.
I will eventually be selling both my PPR and the rental property. I hope to advertise the rental in the next fortnight so that should sell quick and align with the new house purchase.
Click to expand...
Why would you be talking to BOI re a mortgage. I have a BOI mortgage only because they were the only people prepared to give me a mortgage as a Proprietary Director without any company accounts yet. Aside from that, their rates are very uncompetitive.
 
ClubMan said:
Don't forget to account for CGT that may need to be paid on the sale of this property and when it needs to be filed/paid:

Capital Gains Tax

Capital Gains Tax is charged on the capital gain or profit made on the disposal of an asset. Some assets are exempt from Capital Gains Tax. Find out if you are liable for Capital Gains Tax.
www.citizensinformation.ie www.citizensinformation.ie
Click to expand...
No capital gains to be paid as I have already sold another rental property and carried forward a loss.
 
time to plan said:
Why would you be talking to BOI re a mortgage. I have a BOI mortgage only because they were the only people prepared to give me a mortgage as a Proprietary Director without any company accounts yet. Aside from that, their rates are very uncompetitive.
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I have had 3 mortgages with BOI and always felt that the rate was good, granted two of these were trackers. I will be shopping around but in order to secure the purchase of this property I want to be mortgage approved before I bid.
Once I sell my PPR I will be paying off the mortgage on the new property.
 
@dino

Here's a thread from last year on a similar setup, and some ideas on how to make it happen.

Buying a house, but loan approval subject to selling existing house

Hi All I have €106k Mortgage. I am not in negative equity. I want to purchase a new home but the bank have said that it won't approve my mortgage until I sell my current home. I preferably would like to move from this house directly into a new one as I have a few kids and I have explored the...
www.askaboutmoney.com

There are a few more recent threads. If you provide more info on numbers involved and your income I can scratch my head to see if I've any further ideas for you.
 
Hmmmm... A lot of variables here.

Girlfriend - how likely changing to "wife".
If 90%, then I'd be looking at a complete financial plan as a higher mortgage and pension contributions and using some cash from the property sales to shore up income might be the best option.

It would depend on your age, income and any current pension arrangements.
 
If you are selling two properties in order to raise a sufficient deposit on the new purchase then releasing equity on both/either instead of selling may be an option worth considering.

Only two lenders on the market will allow you to raise funds on existing properties to put towards a deposit on a new property - Finance Ireland & ICS.

Rates start at 3.75%.

Apart from that, as other contributors have stated, more data is needed in order to give you an idea of what you'd qualify for on your own income as a single applicant or with your girlfriend as joint applicants.

BOI is indeed pricey on rates so shopping around will serve you well. Permanent TSB also offers a cashback facility as does EBS in case that is what the BOI official is emphasising.

Best of luck!


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