We are a family of 2 adults (aged 41 & 40) + 3ch currently in a house valued at 295k, balance on tracker mortgage 220k. We have just finished paying off 2 loans so have no savings. We plan on giving it 6 months and hopefully should have savings of 10k before we go to the bank to look for mortgage approval. Wages are 56k and 36k. The cost of houses we are looking at are around 430-450k so the equity on our home should cover the 20per needed as 2nd time buyers. We have no child care costs. We have no issues with credit ratings, no missed mortgage or loan repayments, all bills paid on time, no overdraft as of now, credit card bills paid every month. Are we being realistic looking at this price range? Are the banks approving mortgages even with little savings??
Trading up with tracker
- Thread starter cs1976
- Start date
Brendan Burgess
Founder
- Messages
- 52,197
I have put your two posts together for convenience.
Are you still planning to build or have you changed your mind?
Which lender are you with?
Brendan
Are you still planning to build or have you changed your mind?
Which lender are you with?
Brendan
Thanks Brendan, we are looking at a new build as in a new housing estate not built by us and we are looking at older homes in established estates. We are keen to move within the next year, we have wanted to move for a long time and feel it's within touching distance now! We want to know the reality of the situation before we get our hopes up. We are with EBS
Brendan Burgess
Founder
- Messages
- 52,197
With house costing €450k, you would normally need 20% or €90k which would leave you with a mortgage of €360k
However, the lenders are allowed to make exceptions to this rule, and an exception might be made in your case.
AIB has a tracker mover product, where the margin is raised by 1%. So if you are on ECB +1% now, the €220k would be on ECB +2%, and the rest would be on AIB's normal rates.
Given that you will have this cheap mortgage, your mortgage will be affordable. AIB would love to get the extra 1% on the €220k, so they might well facilitate you.
The only way to find out is to ask.
Brendan
However, the lenders are allowed to make exceptions to this rule, and an exception might be made in your case.
AIB has a tracker mover product, where the margin is raised by 1%. So if you are on ECB +1% now, the €220k would be on ECB +2%, and the rest would be on AIB's normal rates.
Given that you will have this cheap mortgage, your mortgage will be affordable. AIB would love to get the extra 1% on the €220k, so they might well facilitate you.
The only way to find out is to ask.
Brendan