Trading up/ moving to another home query.

[help999]

Hi, I am thinking down the the road we want to trade up. There is a nice area in the city i am in and we would like to move there and settle there, it is closer to the city center on foot and has more amenities..
The houses were built in the 1950s I think, block built and are all fully detached.
Had went to buy there when purchasing our first home but were outbid. We bought in another part of the city it is a nice area too but are preference is the other area.
how does one go about moving.
Say if were to move now our situation is 270k mortgage, home is worth 385 to 400k in current market. 29 years left
The last home I looked at in the area of choice sold for 285k back in 2017. There are probably around the 360 mark now.
Do I need to start another mortgage application or do i transfer the mortgage to the new home.
How do you release or use the equity built up in current home.
Do we need 20% deposit.
do we sell then buy, buy then sell or both at same time.

Thanks

 

[mike2017]

If you wait until January you come under the new BOI rules so that may help you attain a larger mortgage 4x salary 10% deposit etc. Any move to a new house will entail a new mortgage / bank contract as far as I'm aware. You will be a buyer but in a chain with the seller and whoever they are buying off and also who is buying your property. Any issues / delays upstream or downstream will delays things. You do both at the same time. Talk to your solicitor about the process and what costs may be incurred. Are you currently fixed / variable - break fee, utility contracts - break fee, estate agent fees and solicitor fees should come out of the equity as part of the sale transaction usually. Talk to the nice bank manager too!!

 

[noelÓm]

If you wait until January you come under the new BOI rules so that may help you attain a larger mortgage 4x salary 10% deposit etc.

This is not quite right. The 3.5 loan-to-income rule will remain in place for people seeking to move, though the LTV rule will be 90% from January.

 

[noelÓm]

Unless you have a very particular long-term fixed rate mortgage with the likes of Finance Ireland, then you will need to re-apply for a mortgage as a second-time purchaser. You can only borrow 3.5 times your household gross income and must have a 20% deposit. However, this will change to a 10% deposit from January.

Your current mortgage is secured on your house. You will need to pay off the remaining balance by selling and using the proceeds to clear the mortgage. Whatever is left over can be used to part fund the new house and a new mortgage will fund the rest.

Depending on the temperature in the market, you might be forced to go sale agreed on selling your own house before estate agents will entertain bids from you on a new house. But talk to local estate agents in your area. Ideally, you would have the sale of your existing home and your new home close at around the same time. But this might be difficult to engineer depending on how chaotic the market is at any one time and if there are any delays in one or both sale.