Lower variable rates - Ulster Bank

A

Acorn22

Registered User
Messages
170
Hi,

I have a mortgage with the above on a house I'm about to sell. My interest rate is variable (loyal) 3.1% . My partner is currently using it as an office and it's working out well. Should I look for a lower rate with UB and keep the house until the Covid 19 and lockdowns are gone or get rid of it? The alternative is converting a shed in our new home to keep state from church. This would be costly with heating, insulating etc. My current monthly mortgage repayments on the property is e759.42 plus mortgage protection household insurance etc. The LTV is 56%.

Any ideas on the best financial way to accommodate this.

Thanks
 
Is your question

1) Should I wait until Covid is over so that I can sell the house more easily?

or

2) Should I keep the house so that my partner can use it as an office and then sell it?

How much is the house worth?
How much is outstanding on the mortgage?
Do you have a mortgage on your new home?

Brendan
 
Hi Brendan,

According to auctioneer it should be easy enough to sell house despite Covid. I know that they were requested to stop viewings for 3 weeks but after that they will probably be open for business as they are viewed as essential services as they are sorting people out with houses either a) buying or b) renting.

The house is worth between e185,000 to e195,000

There is just over E101,000 left on the mortgage.

Yes we have a new mortgage on our new home for e239,000.

I just think if I can lower the rate with UB it may make more sense to keep the house for a little bit longer rather than converting a shed and all the hassle that comes with that. Some of our neighbours have got those garden houses but they are very expensive.

Thanks
 
You will save €100k @ 3.1%
And you can pay the equity of 90k off your new mortgage so saving about 2.5%

So your annual savings will be about €5,500 if you sell the house.

It's also a good idea to reduce your exposure to property.

A possible reason for not doing so would be if the house is worth less than you paid for it. Any increase in value up to the price you paid for it would thus not become liable for Capital Gains Tax.

But if you don't want a shed in your back garden, then don't build one. That means keeping the house.

Brendan
 
Brendan Burgess said:
You will save €100k @ 3.1%
And you can pay the equity of 90k off your new mortgage so saving about 2.5%

So your annual savings will be about €5,500 if you sell the house.

It's also a good idea to reduce your exposure to property.

A possible reason for not doing so would be if the house is worth less than you paid for it. Any increase in value up to the price you paid for it would thus not become liable for Capital Gains Tax.

But if you don't want a shed in your back garden, then don't build one. That means keeping the house.

Brendan
Click to expand...
Thanks Brendan it's food for thought. Will have to think about it.
 
You must log in or register to reply here.
Back
Top