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Mortgage Advice

  • 25-04-2018 10:49pm
    #1
    hoosh1
    Registered Users Posts: 31 ✭


    Hi all,

    Looking for some advice on mortgages, my girlfriend and I are looking to move in together, she lives at home with parents while I rent a room in a house. Anyway with rent prices being so high we are thinking of buying a place, maybe an apratment for around the 175k mark. Going by current rules we would need 17.5k deposit and be earning at least 60k between us which we are.

    What I am wondering is if in maybe 3 years time we want to upgrade to a 4 bed house worth 250-300k we will need 20% deposit, 50k at least.

    What is the best strategy in this scenario? Do we sell the apartment, rent/move home while buying second place r does the equity in the apartment count towards the deposit?

    Any advice greatly appreciated.


Comments

  • #2
    hoosh1
    Registered Users Posts: 31 ✭hoosh1


    Anyone interested in offering advice on this?

    Thanks


  • #3
    G_R
    Moderators, Education Moderators Posts: 5,028 Mod ✭✭✭✭G_R


    hoosh1 wrote: »
    Anyone interested in offering advice on this?

    Thanks

    The equity will count as deposit. When applying for the second mortgage you would get a valuation so you know what it's worth and then the bank will count that as deposit.

    You then line the sales up so that as someone buys your house, those funds are used to clear your old mortgage and the rest is then in your solicitors clients account to be used for the deposit on the new property, which is then added to your new mortgage and the property is purchased.

    Hope that helps!


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