Downsizing

P

Paddygreen

Registered User
Messages
6
Hi All

I have a query about my mortgage and I'm unsure whether to contact my bank about it.

Myself and my wife took out a mortgage in Summer 2018 at a time when both of us were working in good jobs.

Fast forward a couple of years and a baby into the mix, my wife has lost her job due to Covid.

I can still afford to comfortably pay the mortgage but we were thinking of relocating back home down the country.

The house we're looking at is 100k cheaper than our current property but based on my salary by 3.5 times we wouldn't have enough to get a new mortgage for it.

Not sure whether to contact my bank to see what my options are or if I do so will they get worried by my change in circumstances??

Has anyone any real life experience of this?

Thanks
 
Hi Paddy

What is the downside of asking the bank? As long as you are paying your mortgage, they can't do anything.

If you were in arrears, they would probably facilitate a downsizing, but maybe to a house with a mortgage within 3.5 times of your income.

What is your income and how much would you need to borrow?

Will you have the same earnings if you move to the country?

This is probably a good time to approach them while you are not desperate.

Brendan
 
Hi Brendan

Thanks for the response.

Yes I guess you're right about asking the Bank...I just wasn't sure if I was putting myself on their radar so to speak :)

My salary is €80k and house we're looking at is €450k. We have around €130k equity in our current house so we'd need to borrower around €320k... 4 times my salary.

Yes salary would be the same...luckily would be able to move to our regional office and carry out my role from there.

Thanks

Paddy
 
The bank have a discretion on the 3.5 rule for a certain number of applications. Someone here will know the exact number but I think it’s something like 10% of approvals can be outside the standard rules
 
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