Transferring mortgage to new property

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patm2007

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Hi
we are considering selling our current home - value €325k mortgage of €130k - and purchasing one for €295k - older and slightly smaller but with 5 acres of farm land.

Approx what funds would we need to get us through the process before our house is sold? Solicitors (Wexford) costs etc.

We may look for a increase in the mortgage - €30k. Is this like applying for a new mortgage or is it more straight forward?

Also are sellers/estate agents put off by buyers who need to sell before purchasing? We would plan to use the same estate agent as the seller as they have had excellent success lately in our area. We’ve been told our property would go sale agreed within 2-3 weeks at 325k ( recently valued so we could avail of better LTV rate)

Thanks
 
1) You can't transfer your mortgage as such. Once you sell your home, you pay off your mortgage.
2) When you want to buy a home for €295k, it will cost you about €3k in stamp duty and €2k in legal fees, so you need about €300k in total
3) You will have equity of about €200k , so you need a mortgage of €50k
4) If you have a tracker mortgage on your existing property, your lender may give you a new mortgage at the existing margin +1%, but as rates have fallen, this is no longer that valuable.

5) You will not be able to buy the other house without selling your own.
6) If the estate agent has cash buyers for the other house, they are unlikely to entertain offers from you.
7) If they do accept an offer from you, the deposit is usually 10% so €30k. But this is negotiable. But if you don't have €30k, then the auctioneer will probably not proceed.
 
Thanks Brendan.

Is the 30% fully refundable? Let’s say the sale on our house falls through but we have paid the 30% is there any scenario where we don’t get it back. I do have access to €30k some my own and some my parents but I wouldn’t take my parents unless it was 100% refundable, they’d be paid back in full when our house sold.
 
patm2007 said:
Thanks Brendan.

Is the 30% fully refundable? Let’s say the sale on our house falls through but we have paid the 30% is there any scenario where we don’t get it back. I do have access to €30k some my own and some my parents but I wouldn’t take my parents unless it was 100% refundable, they’d be paid back in full when our house sold.
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Your booking deposit (usually €3-€10k) is fully refundable. The balance of 10% is payable when you sign contracts. You won’t be signing these contracts unless you have co-signed a contract for the sale of your own house. So all very secure
 
A contract for sale of a home is not enforceable until both sides have signed the contract.

So you can pay a deposit when they accept your offer and if you change your mind before you sign a contract, you can pull out at any time.

But if you are going into it with that attitude, it's unlikely that the auctioneer will accept an offer from you , conditional on selling your own home.

edit: My post crossed with luckystar's who explains it better.
 
An option to avoid getting into a chain is to obtain mortgage approval for the new property on the basis of keeping your existing one and letting it out.

You doo need to be able to satisfy the LTV and deposit requirements while maintaining both mortgages. Once you close on the new property, you are free to sell the current one, clear that mortgage and use the remaining proceeds to reduce the new mortgage.
 
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