Moving Home - keeping tracker mortgage

Arddon

Looking into moving home, from a house with a tracker mortgage & approx €80k Neg Equity to a new build.

My options seem to be...

Sell house leaving neg equity of €80k...there is a new mortgage for this at the tracker rate plus 1% over the same term as new mortgage (30yrs)...at the moment it equates to approx €400 p/m...

New Mortgage for new build...at variable rate etc...

Have I any other options?

Can I sell my house and use whatever monies I get to build a new house:o...I'm guessing NO is the answer but I would like confirmation...

The €400 p/m on the Neg equity is the killer here...the thoughts of paying over €400 p/m for nothing for the rest of my days is driving me crazy

Hopefully somebody on here who has a decent knowledge of the mortgage world can offer me some words of advice or shine a light on other avenues that may be worth exploring...

thanks

Trish56

Arddon, if you sell your house you must clear the mortgage on it. Can you not bring the balance on your tracker mortgage to the new mortgage plus the negative equity?
Have you considered renting out your existing property and getting a mortgage for the self build. What bank is your existing mortgage with and do you have savings or gift of site?

Trish

Arddon wrote: »

Looking into moving home, from a house with a tracker mortgage & approx €80k Neg Equity to a new build.

My options seem to be...

Sell house leaving neg equity of €80k...there is a new mortgage for this at the tracker rate plus 1% over the same term as new mortgage (30yrs)...at the moment it equates to approx €400 p/m...

New Mortgage for new build...at variable rate etc...

Have I any other options?

Can I sell my house and use whatever monies I get to build a new house:o...I'm guessing NO is the answer but I would like confirmation...

The €400 p/m on the Neg equity is the killer here...the thoughts of paying over €400 p/m for nothing for the rest of my days is driving me crazy

Hopefully somebody on here who has a decent knowledge of the mortgage world can offer me some words of advice or shine a light on other avenues that may be worth exploring...

thanks

Arddon

Hi Thanks for your reply...

in terms of bringing the balance plus the neg equity - i'm not sure what you mean by this - can you explain

i have thought about renting it, its in a good rental area, with demand at the moment.
not too sure what way the banks would look at it though in terms of giving me a 2nd mortgage, but it would be a lot "cheaper" to rent it out than to take a hit on Neg Eq and there would come a point in 10-15 yrs where I could sell it and walk away at less cost than the Neg Eq loan option...am I correct in thinking this.

bank is ptsb...i believe they have better options for people moving house as opposed to building a new one

i have purchased the land on which i wish to build from savings...so savings at the moment is small...

Trish56

If you sell your house you can transfer the negative equity balance of 80k to the new mortgage and also avail of the tracker rate on the outstanding balance and term. . Max loan to value on new property allowed up to 125%.

Very hard to give you an example as you need to provide more information such as what is tracker rate and what is value of site and estimated cost of construction for new build. Are you planning on building by self build or getting a building contractor.

It is possible to rent out your existing and get a new mortgage for new property. This all will depend on your income, rental income, ages, dependents etc.