Using proceeds of sale for deposit

Nalex17

Registered User
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10
Hi there,

Planning on putting house up for sale around may/June next year.

Husband working full time and will be in probationary period untill June. Earning e35000. I work part time, 20000 a year. 2 children. Have just started in job after 4 year degree.

In current house 5 years, bought on an affordable housing scheme 19% below then market price. Currently owe around 88,000 on mortgage. Houses in area currently selling between 400,000-600,000. Our house would be considerably larger than most in area. Area is in high demand (Dublin 8).

Here is the dilemma.. as I've just finished college, we have no savings. Our plan is to sell house, pay back mortgage and claw back. Luckily we are able to move in with my parents while we are in-between houses.

Is it possible to use the proceeds of house sale as deposit to obtain another mortgage? Will only require around 100,000. Realistically we cannot save till after Christmas where we will be able to save 600 p/m.

Going on minimum house selling prices in area, we would have ~236,000 left. Would be looking to buy another house in around 330000-350000 price range.

Would the lack of monthly savings stop us getting a mortgage considering we'd have ~236000?

TIA
 
Hi Nalex

The only way to answer this question is to apply to the banks for Approval in Principle.

Who is your current loan with? If you have met all your repayments, and you will be borrowing less, they should facilitate you.

Check out this Key Post

Preparing for a mortgage application
 
Thanks for reply, current mortgage is with Dublin city council so will be applying to the banks when the time comes.. cheers for link will check it out now.
 
You need to be able to demonstrate that you can afford the mortgage repayments stress tested at +2%. If all you can save is €600 despite living back at home, it might be an uphill battle. Having said that, the repayments probably won't be a million miles off that.
 
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