We're also exploring our options

[Karen79]

Hi,
We are hoping to move house within the next 6-8months and we are looking for some advise as to whether we would be in a position to make the move or if we would need to hand on a bit longer.

Financial Details

Mortgage:
Current Monthly Amount - €750 (on a tracker mortgage)
Outstanding balance - €188,000

Current house Value – Approx. €240,000 - €260,000 (similar houses nearby sold recently for between 250,000 and 265,000)

Incomings & Outgoings
Salary 1 - €85k
Salary 2 - €55k

Children – 2, child care costs are €600 (family member looks after them)

Savings / loans:
1. we saved a number of years ago to borrow to extend our house so currently we have €23k in savings with an outstanding loan from extension of €18k. Monthly loan repayment is €1300.

2. Car loan with a balance of €4100 but with €4500 in savings. Monthly loan repayment is €300.

We are looking to move and wondering if we were to sell the house at around €250k, giving us a profit of around €60k, would we be in a position to look at houses in the region of €430-450k based on our ability to pay mortgage and 2 loans....but without any major savings over and above the outstanding loan amounts??
Any tips or info is appreciated,
Karen

 

[Bronte]

Is everybody moving house. I'm going to declare the recession over.

Karen I'll get back to you later.

 

[44brendan]

You appear to be in an excellent position to apply for a new loan. loss of tracker will be a downside. With savings of 23K you can clear your extension loan leaving you c65k to cover deposit plus expenses on new property. You have also shown a good ability to meet higher level of repayments with 1,300 pm on the extension loan plus savings record.

 

[Karen79]

Thanks for the reply Brendan.
We'll bring our situation to the bank and see where we stand.

 

[Bronte]

I'm curious Karen as to why you did the extension and now want to move?

I'll go with your lower figures. 240K - 188K = 52

You have in addition savings of 23K. But it's really only 5K as you owe 18K. 52K plus 5K 57K but less say 10K selling/buying costs - 47K.

Is the extension and car loan with a credit union? What is the interest rate.

How much would a mortgage of 400K cost you a month. As 44 brendan said you have ability right to to repay if you pay down the extension loan around 2K a month. (750 mortgage + loan of 1300).


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You asked a specific question on paying everything as now except your mortgage would be a lot higher. How much a month do you currently save, you add that to the 750 mortgage amount and that is how much you can afford in new mortgage.
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Before moving from a very comfortable existense with good salaries be very sure your jobs are secure.

 

[Bronte]

You appear to be in an excellent position to apply for a new loan. loss of tracker will be a downside. With savings of 23K you can clear your extension loan leaving you c65k to cover deposit plus expenses on new property. You have also shown a good ability to meet higher level of repayments with 1,300 pm on the extension loan plus savings record.

Does she not need a 20% deposit? A house of 450K would therefore need 90K of a deposit I thought.