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Looking at upsizing

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  • 06-07-2016 10:01pm
    #1
    goz83
    Registered Users Posts: 8,034 ✭✭✭


    I found a thread similar to my question here, but as the thread is 2.5 years old, I thought a fresh thread would be best.

    We bought a 3 bed semi (with an attic bedroom making it unofficial 4 bed) in Dublin at the very end of 2007 for circa 400k. Prices almost halved at the height of the crash and they are now about 25% lower (so value 300k). We had 2 kids when we bought the house and we now have 5 kids. I grew up in the house we bought. To be honest, it's just feeling a bit tight for a growing family and there's not a whole lot of room to extend without some gig spending on double height extensions at the loss of garden space, which is in short enough supply. The kids are 8 months to 13 years, so it's only going to get more claustrophobic.

    Since we drew the mortgage down, I quit my job and became self employed. My wife is is a civil servant and salary has seen reductions since. My earnings have been small and a business I set up last year is just starting to grow, but will be a good 6-12 months before I will be able to take a salary of maybe 2-3k per month.

    We have seen a local property, only a 5 minute walk from us. It is closer to the kids school. We would live in the same area and there would be a bit more space. The property is a 5 bed and has a garage, which would be ideal for converting into an office for me (saving me €500 per month on rent and subsidies). It's closer to my the inlaws, which is great, as her mum looks after our kids while we work. It's actually a 1 minute walk to them. The house definitely needs updating and insulation and what not, but it ticks quite a few boxes (haven't yet viewed it or discussed in detail). The property is 120k over what ours is worth.

    I wonder if it is even worth while talking to the bank as we are still in negative equity (house worth 300k ish and mortgage is circa 360k now).

    Anyone have any insight about this? I don't want to pump more money into my current home if we are not going to be here for much longer. At the same time, a short fall of 180k seems like a very long way off affording the property we are looking at (60k mortgage left over from sale of house, plus 120k property price difference) and that's before other fees are considered.


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    #2
    colm_c
    Registered Users Posts: 2,031 ✭✭✭colm_c


    You're probably on a tracker, if you take out a new mortgage (which I imagine you will have to), you'll be back to standard rates.

    The other thing, is that the mortgage will be for 360+120 less your deposit, which will need to be 20% - which would be 96k.

    But best to talk to the bank, a 5 minute chat with a mortgage advisor will give you a more solid answer than some randomer off the internet.


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    #3
    Boater123
    Closed Accounts Posts: 312 ✭✭Boater123


    Get your house valued, you might be pleasantly surprised how much a house in Dublin is worth currently. Might put the whole thing in a different perspective!

    There was another thread a few days ago about a tracker mortgage. Poster thought his house was worth €250k+, had it valued was advised it was worth €320-340k.


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    #4
    Foreign Sports
    Registered Users Posts: 572 ✭✭✭Foreign Sports


    colm_c wrote: »
    You're probably on a tracker, if you take out a new mortgage (which I imagine you will have to), you'll be back to standard rates.

    The other thing, is that the mortgage will be for 360+120 less your deposit, which will need to be 20% - which would be 96k.

    But best to talk to the bank, a 5 minute chat with a mortgage advisor will give you a more solid answer than some randomer off the internet.


    It all depends on the bank the mortgage is with. PTSB only ask for a 10% deposit when porting a tracker and if the house is in negative equity.

    So the existing mortgage would be ported over where it is still on a tracker plus an addition to the rate (1% in the case of PTSB). The shortfall is then mortgaged at standard rates.


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    #5
    goz83
    Registered Users Posts: 8,034 ✭✭✭goz83


    colm_c wrote: »
    You're probably on a tracker, if you take out a new mortgage (which I imagine you will have to), you'll be back to standard rates.

    The other thing, is that the mortgage will be for 360+120 less your deposit, which will need to be 20% - which would be 96k.

    But best to talk to the bank, a 5 minute chat with a mortgage advisor will give you a more solid answer than some randomer off the internet.

    No, not on a tracker mortgage, so monthly amount is quite high (at 35 year term).
    Boater123 wrote: »
    Get your house valued, you might be pleasantly surprised how much a house in Dublin is worth currently. Might put the whole thing in a different perspective!

    There was another thread a few days ago about a tracker mortgage. Poster thought his house was worth €250k+, had it valued was advised it was worth €320-340k.

    There are a couple of house on my road and in the area for sale (all the same type of semi-d in the same estate) and they are all around the 300k mark, which is why I have assumed mine is valued at 300k.


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