We're looking into buying and moving to a new house. Being in a chain put us at a disadvantage based from what I understand when visiting a few new houses. Given that bridging loans no longer exist in Ireland, I wonder whether there are some common way to do this, as smoothly and fast as possible, ie: without having to rent for a short period of time between the moment when we sell house and get the new house.
Current house:
- Value: 240k. Mortgage left: 128k over 23 years (around 680 euros / mth).
New house:
- Value: 375k.
We have 20% of 375k as deposit (75k), so I could "technically" get a second mortgage for 300k and still meet the central bank deposit criteria, buy the new house, move to that house, and then sell the old house (or maybe rent it, we haven't decided yet). Assuming that it takes 3 months to sell the old house, I would have at worst to pay 2 mortgages for 3 months, but I'm sure we can minimize this period of time by putting on market earlier. We could also rent it for a period of time as the rent would more than cover the mortgage even if it moves to a BTL rate.
A few online banks calculators tells me that they would lend us 300k, including with the existing 680 euros monthly repayment ("loans commitments"). Now, the old mortgage + new mortgage would be 128+300=428k, which is way above 3.5 times our income, so I'm not fully certain that we won't get rejected at a latter stage in the process due to the central bank rules. Perhaps someone knows better?
Before I go further in an application, I was wondering whether:
- Anyone may have experience in doing the same to move house
- There may be other ways to move house in a smooth way when in a chain?
Thanks.