Transferring mortgage question

S

shoppergal

Registered User
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Apologies if this is a v stupid question (I fear it is!!!)
Current mortgage outstanding is approx 180k. If we were to move the mortgage to a new home would we be allowed this amount or would we be restricted to 3.5 times gross salary? (135k)
 
You can't really move a mortgage to a new property. The outstanding balance needs to be cleared when you sell one property and a new mortgage commenced for the new property, and yes, this will be bound by the LTI rules.
 
If you are in negative equity, the Central Bank rules don't apply to you.

But it's very unlikely that a bank would allow you to have a mortgage of 4.8 times your salary.

Even if you could convince a bank to do this, do you think it would be a good idea? Selling one house and buying another is very expensive. I think you need to get your loan down or your salary up before moving.

Brendan
 
With ptsb, tracker mortgage, about 80k equity so was hoping to use that, along with the mortgage amount of 180k to buy something new. Not trading up as such, just changing location.

Brendan, monthly payment wouldn't increase by much as not looking to increase the morgage amount. Overall rate would increase by 1% as moving tracker.

Thanks all, I thought the mortgage would transfer to a new property, didn't realise it was essentially treated as a new mortgage. Will have to get saving!!!!
 
You are covered by the Central Bank regulations. However, they can make exceptions, so they might be happy enough to allow you to move to another house as they would be getting a higher interest rate.

Brendan
 
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