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Moving, Mortgate and bridging

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  • 11-10-2010 12:49am
    #1
    darsar
    Registered Users Posts: 736 ✭✭✭


    Hi all. I think posting here is the correct place.

    My partner and I own a two bed apartment bought in early 2008 for €325,000. We have a son that will be two in January and would love to move to a three bed and a garden. The house we are looking at is €310,000 on the market so how can it work?

    Current balance on our tracker mortgage is roughly €314,000.

    Would we have to surrender our tracker mortgage?

    I understand we will not get €325,000 for our place so is it a case that if we can get whatever we can get we will have to make up the difference to make €314,000? Then we have to apply for a mortgage again?

    That would mean having no home in the sold/received money stage (live with her parents no problem)

    Bridging loan. Does this mean, once approved, we get a loan bridging the sale of old apartment and moving to new house stage? Would this mean keeping tracker mortgage possibly?

    I am not very knowledgable in this field. The broker did absolutely everything for the apartment, when we were first time buyers I guess you gathered!


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    #2
    3DataModem
    Registered Users Posts: 3,997 ✭✭✭3DataModem


    Your current bank won't let you sell unless you clear the mortgage. So if you sell for say 250k you will owe bank 64.

    You are then proposing to buy place for 310k. You will need to get a mortgage for this amount somehow... 100% mortgages are hard to get at the moment.

    I would suggest that you may be better off renting a house you like and renting out your apartment. If you rent your place out for 800 and rent another place for say 1100 it only costs you an extra 300 per month and you get to live someplace nice AND keep your tracker... And I imagine your tracker could be saving you 200-300 per month as it is.


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    #3
    darsar
    Registered Users Posts: 736 ✭✭✭darsar


    3DataModem wrote: »
    Your current bank won't let you sell unless you clear the mortgage. So if you sell for say 250k you will owe bank 64.

    You are then proposing to buy place for 310k. You will need to get a mortgage for this amount somehow... 100% mortgages are hard to get at the moment.

    I would suggest that you may be better off renting a house you like and renting out your apartment. If you rent your place out for 800 and rent another place for say 1100 it only costs you an extra 300 per month and you get to live someplace nice AND keep your tracker... And I imagine your tracker could be saving you 200-300 per month as it is.

    Good thinking! I am sceptical about renting as I am forever scared over what happened when my mother rented her house out but I suppose you could get nice tenants too.

    I think the only problem really is long term planning baby number two knowing that we would only be renting and should we have to move back, it's only a two bed apt.


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    #4
    daigo75
    Registered Users Posts: 389 ✭✭daigo75


    darsar wrote: »
    Good thinking! I am sceptical about renting as I am forever scared over what happened when my mother rented her house out but I suppose you could get nice tenants too.

    I think the only problem really is long term planning baby number two knowing that we would only be renting and should we have to move back, it's only a two bed apt.

    +1 for the suggestion of letting your apartment and renting a house. Regarding your concern about the future: I've lived in a small 2 bed apartment form the best part of my life, together with my parents and my sister. After a while you get used to it, it's not a big issue. :)


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