Hi All. Just looking for a bit of advice. We have 2 properties, one is our PPR and one is now a rented property but has a tracker mortgage (1.1%). Neither are suitable as a family home so we now need to buy another house which will hopefully be our forever home. Both have been in negative equity as bought in the boom so we have been stuck in an unsuitable property with 2 young children. Now things have improved and our current home has finally reached market value equivalent to mortgage balance €130k.
The investment property was €350k and has a balance of €246k. I’ve recently realised it’s value has increased and it must now make 280-290 optimistically, worse case €275k. We have been struggling to get a deposit together. We currently have €30k and €20k due in inheritance. House prices are increasing alot where we live.
Bank of Ireland have said they would give us an exemption of 10% loan to value potentially as our incomes are good. However the tracker mortgage is with AiB. They will only do 20% for second time buyer but said we would qualify to carry our tracker rate to a new mortgage if we sold the property plus 1% so 2.2% on €247k of a new mortgage.
My question is should we sell the tracker property to avail of this offer or is the equity release still too low to make good financial sense? This property was originally meant to be my hubby’s pension fund as he is self employed with minimal pension.
Or should we keep it as a pension plan, go ahead with BOI and the 10% deposit and keep saving as much as we can till a good property comes up?
we are not too financially savvy hence ending up with these bad investments!!! So interested in some sound advice. I want the kids to have a family home while they are still young enough to enjoy it. Our current space is ok but no garden. Any banks I spoke to have said we could keep our current property while getting another mortgage but as it’s now reached mortgage value our plan would be to sell it once we find a new home.
The investment property was €350k and has a balance of €246k. I’ve recently realised it’s value has increased and it must now make 280-290 optimistically, worse case €275k. We have been struggling to get a deposit together. We currently have €30k and €20k due in inheritance. House prices are increasing alot where we live.
Bank of Ireland have said they would give us an exemption of 10% loan to value potentially as our incomes are good. However the tracker mortgage is with AiB. They will only do 20% for second time buyer but said we would qualify to carry our tracker rate to a new mortgage if we sold the property plus 1% so 2.2% on €247k of a new mortgage.
My question is should we sell the tracker property to avail of this offer or is the equity release still too low to make good financial sense? This property was originally meant to be my hubby’s pension fund as he is self employed with minimal pension.
Or should we keep it as a pension plan, go ahead with BOI and the 10% deposit and keep saving as much as we can till a good property comes up?
we are not too financially savvy hence ending up with these bad investments!!! So interested in some sound advice. I want the kids to have a family home while they are still young enough to enjoy it. Our current space is ok but no garden. Any banks I spoke to have said we could keep our current property while getting another mortgage but as it’s now reached mortgage value our plan would be to sell it once we find a new home.