Mortgage application for new build

Hi,

We are planning to build on a site which we enherited. At a high level we believe that the build project will cost €600k (everything from fees through to the front gates). We have savings of circa 200k meaning that we will be applying for a mortgage of c. 400k.

Our current property has a mortgage of 205k and we believe it is worth about that on the open market. We have a good AIB Tracker on this property.

We are both working, both with multi-nationals, and have combined annual gross income of c. 160k. We have been in our jobs for 7+ years, Have 2 small children and we are both 40.

We are currently trying to understand our options and have the followings questions which we were hoping for input on.

1. Should we be ok to get a 400k mortgage?
2. Will we definitely have to sell our current property. (and give up our Tracker)
3. What are the chances of AIB following UB and coming up with a product that allows you to carry you existing Tracker to a new property?
4. Linked to no.2 is there any possibility of AIB negotiating on an individual basis? If so how would one go about this?

Many thanks for any input

Hi tomred,

I can't advise on any of your questions you set out and I know you have inherited site. At the moment it is far cheaper to buy a second hand house than it is to build, building materials have risen a lot over the last year or so. Judging by your figures you probably have everything counted in for your spec on the new build. Would you not think of holding on to the site for your children perhaps and looking around to see if there was a property that would suit and that wouldn't cost near as much as a new build - hence you would not have such a large mortgage.

angela59

Thanks Angela, a good observation! I can't say we have not thought about that but at the moment we have our heart set on building.

If anybody had thoughts on the questions it would be appreciated

Hi tomred,

Sorry couldn't be of more use with your answers but having built 18 years ago and had the intention of building a couple of years ago, got planning, researched different building methods, renewable energy etc have parked that idea for further down the line.

Good luck with your plans.

Angela59