How much are we likely to get?

S

snatch

Registered User
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I have used some of the calculators mentioned on this site and gotten varying answers so maybe some of the posters involved in the mortgage business may be able to answer my question.

Current house value 245,000
Current mortgage 175,000
Savings 30,000

Salary 1 - 70,000
Salary 2 - 50,000
No outstanding loans

How much are we likely to get if we trade up?

Great site by the way!
 
Sorry Sarah, details above. I hit button by mistake before I had completed all details:eek:
 
Assuming you are aged under 40 to avail of a 30 year term you're looking at a borrowing capacity of between €530,000 to €550,000. That would be a big jump up for you so how about I turn the question round - how much would you comfortably (or uncomfortably!) be able to afford each month?

Sarah

www.rea.ie
 
Thanks Sarah. We've had fairly large salary increases since we took out the original mortgage. Both aged 26. I feel we would comfortably be able to pay out €2000-€2500pm at current rates.

Would the term offered by lenders be likely to be longer given the fact that we are in our 20's? Both in full time employment 5yrs.
 
Yes, as long as the mortgage is repaid by age 70 you can take a term up to 40 years. €550,000 x 40 years would cost €2019 at 3.15% and €2378 at 4.15% - both figures exclude tax relief and insurance.

Kind regards,

Sarah

www.rea.ie
 
Sarah,
Are banks willing to be flexible in terms of bridging? We own our house..value circa 500k, mortgage circa 240k. We're on 41k and 23k respectively. We might want to bid on a site soon. Would a bank agree to upping our mortgage to say 450k max. for 6 months only to allow us bid on the site, buy it and then prepare our own house for sale bearing in mind its a crap time of year to market a house? We would have no intention of trying to hang onto our own house while building a new house...it would just be to let us bid on a site and we'd be willing to agree this to this in a contract. My parents who own their own house a holiday home would be willing to go and guarantee this.
We are 2 years into a 35 year term on the mortgage. I'm 29, the wife is 30.
 
Hi Legend,

I'm afraid your borrowing capacity, based on your incomes, is around €330,000 so €450,000 would be way too high even on a short term basis. The only option would be if you're parents could/would raise the difference on their own incomes/home to gift you the money in the short term.

Sorry.

Sarah

www.rea.ie
 
ok, I had thought that Sarah....not to worry, its mostly my wife who wants to move anyways!
 
Sarah W said:
Yes, as long as the mortgage is repaid by age 70 you can take a term up to 40 years. €550,000 x 40 years would cost €2019 at 3.15% and €2378 at 4.15% - both figures exclude tax relief and insurance.

Kind regards,

Sarah

www.rea.ie
Click to expand...

Hi Sarah,

is this correct about the 40 year term, i thought this would have been only if you were a FTB and not if you are trading up? If trading up i thought the banks had different rules ie borrow a max of 90% and over a 30year term max? Thats what BOI told me anyway!
 
BoI aren't the only lender! ;)

As long as you qualify on the age restriction you can go to 40 years with most lenders, maximum advance 92% or 100% for professionals on a case by case basis.

Sarah

www.rea.ie
 
Sarah, back to my question above.....if w had our house on the market, would there be any way we could get the additional 175k just for 1-2 months and just pay the interest on it for those 2 months if we were to get guarantors etc???
Forgot to add, the reason I am asking is because my wife says she knows someone who did something similiar with Ptsb in terms of paying interest only for 2 months while supporting the 2 mortgages at the same time.
 
It would all depend on the strength of the guarantor Legend - they would have to prove that their income was sufficient to cover any existing mortgage they have plus the €175,000. Unless a buyer is lined up and has signed contracts there is no way of knowing if the additional funds are needed for 1 month or 12.

Sarah

www.rea.ie
 
ok, thanks again Sarah. I reckon I'll go to pTSB and see what they say at this stage. The basic story is its a site which is zoned in Cork. We hadn't planned on moving for a few years but this site is exactly where we want and we'd have a good chance of planning on it. We could get our own house up for sale within 3-4 weeks. We are part of an estate which is still being built but for which there is very high demand in Cork so selling in theory shouldn't be an issue.
 
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