Mortgage dilemma

C

Cush2016

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My fiancé and I wish to build a new house. It will be a self build project. However it is not clear cut financially.
I own my own house. Built in 2008 . Remaining mortgage €90k. House value €180- €200k. I pay €220 every 2 weeks . I have a very good tracker rate but have set my figure at €220 every 2 weeks so essentially I am paying off more than required.
I earn €35k a year net plus another €5k in bonus. I have no loans . I have one child.

My fiancé owns a house with his brother which is currently being rented out. There is a total of €160k owed on the mortgage and the house has been valued at €115k. So €45k negative equity. He has a car loan of €380 per month. Remaining to be paid €13000. And pays maintenance weekly of €95 for a child.
His net income is €28k working for a builder
We want to move closer to his farm which he will eventually take over from his father. The site will be provided by his parents.

We have savings of €22k.

We are saving €650 per month.

Would it be possible to sell his house and absorb some of the loss into my house by refinancing it. Maybe I'm completely wrong and that is just on heard off.

What is the hope for us with the banks..

PS . I want to keep my own property in the short term maybe 5 years.
 
Which lender are you with?
How much do you need to build the house?

There are a few possibilities here.

1) I don't think you will be able to get a mortgage while keeping both houses. Your incomes do not support more borrowing.
2) You could sell your house, pay off your fiance's shortfall with the proceeds and, depending on your lender, transfer the tracker to the self-build.
3) Your fiance and his brother could sell his jointly owned house and he would have a shortfall of €25k. On €28k, I can't see him getting much of a mortgage.

So I think that 2) is the only option.

Brendan
 
Why do you want to keep the house and why a specific 5 years?

In the monthly savings, how long has that been for, and how much each. Where do you both live.

How much will a house cost to build, as I've said on here, many times, please don't build a McMansion.

I would pay no money for a house to be built on a site owned by the other party.

He pays nearly as much for his child as his car.

The NE house with the brother is the first thing that needs sorting out. How does the brother feel about it?
 
I am with Danske Bank and he is with Permanet TSB.
We have been saving long term for about 10 years but only recently increased it to €650.
We would need approx €130k to build new house.
As sceptical as it sounds I am not 100% happy with giving up my house to build on site owned by him in a place where I would not be able to live if the marriage broke down. And with no possibility of selling this house as it is practically in his parents back yard.
I am protecting my own position , assets and my son.
 
OK, Danske won't allow you to transfer the tracker to a new property. They want out of the country.

It would be very risky to sell your house to build a house on a site in your parents in law's back yard.

In fact, it would be very risky for you to contribute at all to the cost of building on the site.

He has no chance of getting a mortgage on his own with his other property in negative equity and his low salary.

Cush2016 said:
I have a very good tracker rate but have set my figure at €220 every 2 weeks so essentially I am paying off more than required.
Click to expand...

I meant to comment on this. You should not be overpaying a tracker mortgage, especially when you have other things to do with the money. For example, you could lend it to your fiance to overpay his mortgage.

Brendan
 
Wow Cush, your're a clever girl. Hence my questions. You gave a couple of hints there in your opening post. You will know the man by his actions to his ex and child. I personally wouldn't like to live next to my PIL. So why do it at all. Do you want to tease this out some more, bring more clarity to your thoughts ....

Who wants to build a house. Why. What is wrong with the current 10 year living arrangement. He's in line for a seizable inheritance. Maybe.

You've done ok, your own house, bringing up your son, a good job, overpaying your mortgage, savings...

He has NE, a nice car, seizable car debt, is part supporting a child.

What does the brother think about him inheriting? Who is going to mind elderly parents.

( I realise you're a woman, just an expression)
 
I'm confused Bronte. My fiancé is probably one of the most devoted fathers I have ever met. He would have him full time if she didn't want the child to stay with her so she can keep getting maintenance payments which were inforced by a court only recently because the ex got greedy and has a dislike for work. He has the child 4 days a week currently but the current Irish judicial system don't ever take the fathers side. Yes he has a lot of debt but he makes me very happy.

I am so excited about the prospect of moving there it's a new life with new possibilities. Yes he will eventually inherit the farm as for minding the parents he has 3 sisters who will have to come on board. I will not be taking that on.

We have been together for about 2 years and currently don't live together at my house.

It is to hard to commute over and back when you have a farm and the lose of stock is a serious loss in a diary herd.

It would be best for our family life ... But I'm a nervous individual.. And don't like taking risks.
 
Even doing a self build 130k won't build a house, you'll be looking at half finished for a long time. Be sure to do your costings right, personally I think living in a half finished building site is hard going.
 
It's all doom and gloom here but dose of reality maybe.
We are lucky we have a nice house to live until our situation improves.​
 
Be thankful you are on a Tracker Mortgage. There are horrendous stories of what has happened people allegedly wrongfully deprived of a tracker mortgage by Banks working for Ireland's recovery. [Sounds like North Korea here !]
 
Cush2016 said:
I'm confused Bronte. My fiancé is probably one of the most devoted fathers I have ever met. He would have him full time if she didn't want the child to stay with her so she can keep getting maintenance payments which were inforced by a court only recently because the ex got greedy and has a dislike for work. He has the child 4 days a week currently but the current Irish judicial system don't ever take the fathers side. Yes he has a lot of debt but he makes me very happy.

I am so excited about the prospect of moving there it's a new life with new possibilities. Yes he will eventually inherit the farm as for minding the parents he has 3 sisters who will have to come on board. I will not be taking that on.

We have been together for about 2 years and currently don't live together at my house.

It is to hard to commute over and back when you have a farm and the lose of stock is a serious loss in a diary herd.

It would be best for our family life ... But I'm a nervous individual.. And don't like taking risks.
Click to expand...

Well now I'm totally confused too. Initially you said you'd been saving for 10years. And here you are saying you've been together 2 years.

Has he ever lived away from home? You live in your house and commute. Circa how far is that.

That's interesting about the inheritence, he gets the farm but the sisters mind the parents. And the brother also gets nothing. He is the farmer than I take it. Doing the milking morning and evening etc.

I wouldn't consider a woman with a child getting 95€ a week greedy even if she doesn't have the child full time. Not sure how he is minding the child so often when he's got a full time job, is working on the farm and making time for you too.

This house you dream of building, where did you get the figure of 130K from? How many bedrooms?

Whose idea was it to build a house?

Does the rent on his NE house cover the mortgage?
 
I know you think we're being overly negative but this forum is full of stories about when similar situations have gone badly wrong.
Without reference to anything else, i'd say cool your jets and have him move in with you before you even talk about building a house together (with all the extraneous issues that go with building on your PIL land). Then see how that goes and then after a year or two see how you feel about building a house together.
 
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