# Married couple two mortgages what are options



## Bello (21 May 2014)

Hi just wondering if anyone else has experience of the below.
My husband owns a house with a variable tracker mortgage with AIB and I have a house with variable mortgage with ICS which we use as our family home.
Both houses are in our individual names as we owned before we met.

At the moment we are paying two mortgages which will not be sustainable for the future years .
He would most likely break even if to sell his house now .
Is there an option for him to trade up and purchase the house which is in my name and hold onto to the tracker mortgage and this allows me to pay close off the variable mortgage in my name or is this not a runner?


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## Bronte (21 May 2014)

You don't think AIB will actually go for this.  

I presume you are both living together in your home.  Is his house rented?


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## Brendan Burgess (21 May 2014)

Hi Bello 

AIB allows people to retain their tracker when moving house, but they increase the rate by 1%.  

Will they allow your husband to buy his wife's house?  I can't see why they would not, although it's a bit unusual.

Please give the figures - amount of mortgage, value of homes, interest rates, rent received on husband's property.



> At the moment we are paying two mortgages which will not be sustainable for the future years .


I don't understand this at all. Your husband has a cheap tracker on a home he is renting which is not in negative equity.  The rent should be covering most or all of the repayments. It should certainly be making a big profit over the interest charged, which means that he is paying down his mortgage rapidly.

I think you may be better off holding onto your husband's property as it is so profitable.


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## Bello (21 May 2014)

Thanks for the advice at the moment it is not fully rented so there is an approx 400 shortfall  so we need to look at that first and re access . Agree don't want to lose out in tracker mortgage where possibly .


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## oysterman (21 May 2014)

Bello said:


> ...it is not fully rented so there is an approx 400 shortfall...


Not sure what is meant by "not fully rented".

However, I really doubt there's a shortfall if it's rented at all. The issue is not whether the full mortgage payment is being covered by the rent but, rather, whether the interest portion of the payment is covered. If the rental income exceeds the mortgage interest then it is paying down some of the capital sum owed so there is no "shortfall" even if the rental income is less than the overall mortgage payment.

Professional landlords evaluate break-even on properties by looking at rental income versus financing costs plus expenses; any excess is profit.

At current interest rates and rental values, if you're lucky enough to have a tracker mortgage on a property you're renting out then it would be remarkable not to be making a profit, even if rental income is less than total mortgage payment.


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