Want to trade up from rented apartment to house, but have restructured mortgage

[edbedb]

hi

can you tell me what the rules are if i have a 1 bed apt bought in 2008 with a current mtg of 275 value 200k .we rent a seperate property as we have now 3 small children but would like a house .we had arrears which have been capitalised and on full repayments again after many separate rst agreements.we have a inheritance of 75k and would like a house which would not increase the total outstanding current loan ie repayment capacity is exactly the same but they would have loan on a house rather than the apt can this be done as obviously icb is poor due to previous arrears. technically they are not lending any more funds? .we have proven repayment capacity based on rental amount we pay each month but are obviously taxed on rental income.thanks

 

[Brendan Burgess]

So, you are proposing something like the following:

This would make sense, but it's unlikely that the lender would go for it. All you can do is to present the information in the above format, and ask them.

Which lender is it?

 

[edbedb]

thanks for your reply .yes it is aib. i thought they may make a fair assesment based on the fact its actually tracker plus a small percent so say 1100 rental income 1100 rent but we are paying more in rental outgoing approx 1400 but as prices go up this will soon change and we may be forced to live in the apt again with 3 kids !from a personal perspective surely it would make no odds to them to just allow us do what i have mentioned above as nothing really changes for them and we are both only 31 .it seems like nobody can help or give me a straight answer

 

[Brendan Burgess]

The only ones who can give you a straight answer is AIB.

The fact that you have a tracker may encourage them as they would increase the interest rate by 1% over the current rate.

All you can do is submit an application and see how it goes.

Brendan