Looking to downsize, but will bank give new mortgage ?.

[Ophiucus]

Would mortgage provider look "favourably" on my application.

€180k outstanding on my current tracker mortgage (1% +0.75%).
I was made redundant and now have casual employment earning average €1500 per month. Spouse childminding earning €800 p/m.
Monthly mortgate repayment is currently €1220 p/m

I want to downsize and reduce my exposure, i.e pay off existing mortgage and seek new mortgate of €60k over 13 years.

So I would be effectively reducing my exposure by 120k and coming off tracker.

I would appreciate your comments.

 

[LDFerguson]

Although logic says that your proposal makes sense - smaller mortgage and giving up the tracker rate - in practice you're unlikely to get a mortgage at all on the basis of casual employment.

The only ones who might even consider this might be your existing lender, so it's worth a chat with them, but frankly I would doubt it.

 

[niceoneted]

Did you get any redundancy that you could pay part towards the mortgage to reduce it?
Are you happy in the house that you are currently living in or is it just to reduce mortgage that you want to move?
Could you look to go interest only for a while to reduce payments and perhaps save some of the capital and pay it off as a lump sum when coming off interest only?
I would be reluctant to give up the tracker too.