Can I trade up?

M

mickmac29

Registered User
Messages
9
Hi
I currently live in a 2 bed apartment which I purchased for 185000 in 1994. I tookout a mortgage of 172000 at the time. Currently the mortgage balance is 121000 with halifax ( No longer lending in Ireland.) I haven't missed any payments and am not in arrears. I currently overpay the mortgage by 250 per month and save 800 per month on top of my mortgage repayments of 675 per month. The apartment is in negative equity and is difficult to value but I think it would sell for around 60000. I haven't talked to the banks yet as I am only starting to explore my options. Given that halifax no longer operate in Ireland what chances would I have of selling the apartment and buying a house. Would anyone like to estimate the maximum mortgage I would get from an Irish bank. I am 38 years old and would like to pay off any new mortgage by the age of 60. I've included any information below.






Income details
Net monthly (i.e. after tax) Income self: PAYE employee in a pharma company. Net monthly income is 2900 euro.

Income history: e.g. I am working for a pharma company for the past 15 years. The job is in a stable company.

Net monthly income partner/spouse: n/a

Personal circumstances so we can calculate your reasonable living expenses

One adult family or two adult family: Single person
Do you need a car for work or do you use public transport? Public transport
Monthly spend on special circumstances: none



Home loan
Lender: Halifax ( taken over by bank of scotland.)
Amount outstanding: 121000
Value of home: 60000
Interest rate: Tracker of 1.75%
Monthly repayment 675 euro
Amount in arrears Not in arrears

Summary of discussions and agreements with the bank. No discussions with the bank as of yet.

Investment property - None

Credit Union
Amount of shares 13000
Amount of loan outstanding: None
Monthly repayment none
Term left none


Other loans and creditors - No other loans apart from mortgage.


Other savings and investments

Total savings of 59000 including the 13000 in the credit union.


Do you expect any lump sums in the medium term future?
No.


How important is retaining the family home to you?
Which of the following best describes your situation?

I don't care about keeping the family home.



Any other relevant information

What is your preferred realistic outcome?
I would like to sell my current apartment which is in negative equity and trade up to a small house.
 
You are in the unfortunate position of needing a trade up mortgage from your existing lender as no other lender would be prepared to take on the negative equity residual of your existing mortgage. As you say, Halifax are out of the Irish market and AFAIK are not in the business of granting trade-up mortgages. Other posters may have more detailed info on current Halifax approach! In my view it would appear that the only option open to you currently is to rent out your existing apt in time and in the meantime stop overtpaying your mortgage and use the funds saved to build up a nest egg to put towards the purchase of a new home and a new mortgage!
 
I don't understand how your mortgage has only reduced by 60k over a 20 year period?

And how could an appartment costing 185k in 1994 only be worth 60k now?
 
As Brendan above says - stop overpaying your mortgage and increase your savings as when/if you are in a position to trade up the savings will be more important in the context of a deposit etc for the new mortgage.

I think Brendan B has a few posts on this.
 
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