Heres the situation.
Bought current home in 2004. Perfect record.. no missed payments etc..
82k remaining on current mortgage, 10 and a half years remaining. Monthy repayments are low because its a tracker 692 euro a month.
Looking to move and buy a house for about 400K to 430k (lets say 420 for the sake of argument).
We have about 100k put away in cash (I have another 40k or so company bonus taken as shares to minimise tax of which about 12k vests each year in the spring - I am in the sort of industry where these shares don't go up and down that much). So I don't think these count.
Combined income is roughly 133 excluding bonus (I get a bonus as part of plan of 20%, its performance related but its been at or above target for 17 of the last 18 years with the exception of 2009 when the recession dropped it to roughly 40% of its normal level)... again not sure if they count this as income. Some probably do, some don't.
Anyway... I was going to pay off the current house and be debt free (aside from the last 18 months of my car loan and the last year or so of childcare)
Instead a house which we both have long admired has come up and we want this one and this one only.. if it doesn't work out, we stay where we are.
Anyway... I have discounted rental of our current property as it looks like a nightmare... I only pay about 90 a month in interest, so I will lose about half of the 12k potential income, plus either have to stump up for furniture in the new house or the old one.. not to mention all the messing that goes with being a landlord these days which judging by the forum here, seems to have become a bit of a nightmare in recent years.
So it comes down to selling.. our house is worth about 200k, 220 at the max. So maybe 120k equity in it. Perhaps more.
My lender BOI wants to port the tracker, add a percent to it and then have me rent the place... that strikes me as opportunistic on their part and I have no desire to do so. I would rather keep the existing mortgage as it is until the house is sold.
Basically can I pay both ?
Also, unrelated... but parts of this house, although its pretty turnkey, have single glazed windows and I would love a messy job like that done before we move in.. could you add the cost of that.. about 16k ish to the new mortgage or is that out of the question ? (if so, its heavy curtains this winter if we can make the deal happen and do it during the summer when my next bonus / shares vest)
Another option is to go to another lender and take the new mortgage out completely separately, but I don't know if that is even a possibility.
Bought current home in 2004. Perfect record.. no missed payments etc..
82k remaining on current mortgage, 10 and a half years remaining. Monthy repayments are low because its a tracker 692 euro a month.
Looking to move and buy a house for about 400K to 430k (lets say 420 for the sake of argument).
We have about 100k put away in cash (I have another 40k or so company bonus taken as shares to minimise tax of which about 12k vests each year in the spring - I am in the sort of industry where these shares don't go up and down that much). So I don't think these count.
Combined income is roughly 133 excluding bonus (I get a bonus as part of plan of 20%, its performance related but its been at or above target for 17 of the last 18 years with the exception of 2009 when the recession dropped it to roughly 40% of its normal level)... again not sure if they count this as income. Some probably do, some don't.
Anyway... I was going to pay off the current house and be debt free (aside from the last 18 months of my car loan and the last year or so of childcare)
Instead a house which we both have long admired has come up and we want this one and this one only.. if it doesn't work out, we stay where we are.
Anyway... I have discounted rental of our current property as it looks like a nightmare... I only pay about 90 a month in interest, so I will lose about half of the 12k potential income, plus either have to stump up for furniture in the new house or the old one.. not to mention all the messing that goes with being a landlord these days which judging by the forum here, seems to have become a bit of a nightmare in recent years.
So it comes down to selling.. our house is worth about 200k, 220 at the max. So maybe 120k equity in it. Perhaps more.
My lender BOI wants to port the tracker, add a percent to it and then have me rent the place... that strikes me as opportunistic on their part and I have no desire to do so. I would rather keep the existing mortgage as it is until the house is sold.
Basically can I pay both ?
Also, unrelated... but parts of this house, although its pretty turnkey, have single glazed windows and I would love a messy job like that done before we move in.. could you add the cost of that.. about 16k ish to the new mortgage or is that out of the question ? (if so, its heavy curtains this winter if we can make the deal happen and do it during the summer when my next bonus / shares vest)
Another option is to go to another lender and take the new mortgage out completely separately, but I don't know if that is even a possibility.