E
essjay
Guest
Hi guys.... Just have a few questions about financing and extension.
So first up, we bought the house in 2005 and we're in D12. We are also in negative equity I would assume to the tune of around €40k I'd say.
Basically we need a bigger house as we have 2 children. The choices that I can see are either sell and pay off the NE before saving a deposit to buy again which would probably take 5+ years or to extend our current house.
So picking numbers out of the air, assume the extension will cost €100k and our house is worth €220k with a mortgage of €260k. Assuming that the extension will only add €100k to the house (although I would hope more as we could be adding 3 bedrooms), would the bank only loan us €12k (85% of the final house value minus our current debt)? Those numbers are also assuming that we didn't contribute savings to the build which we would to the tune of €20k or so.
The other question I have is how could we raise finance without loosing our tracker mortgage? I doubt the bank would allow us to top up our current mortgage @ 1.15% above ECB. Is it possible to get a second mortgage on a house to cover any extra we would need?
So first up, we bought the house in 2005 and we're in D12. We are also in negative equity I would assume to the tune of around €40k I'd say.
Basically we need a bigger house as we have 2 children. The choices that I can see are either sell and pay off the NE before saving a deposit to buy again which would probably take 5+ years or to extend our current house.
So picking numbers out of the air, assume the extension will cost €100k and our house is worth €220k with a mortgage of €260k. Assuming that the extension will only add €100k to the house (although I would hope more as we could be adding 3 bedrooms), would the bank only loan us €12k (85% of the final house value minus our current debt)? Those numbers are also assuming that we didn't contribute savings to the build which we would to the tune of €20k or so.
The other question I have is how could we raise finance without loosing our tracker mortgage? I doubt the bank would allow us to top up our current mortgage @ 1.15% above ECB. Is it possible to get a second mortgage on a house to cover any extra we would need?