Moving with negative equity

[Budski]

Our Current Situation


Existing House 3 Bed Semi


Outstanding Mortgage = €135K approx (Tracker with Ulster Bank with 21 years remaining)

Market Value = €100k approx

So Negative Equity = €30K


For a number of reasons we would like to move to a bigger house in a different area and we are looking at a


4 Bed Detached House (New Build)

Cost = €275k

Cost to decorate, etc €25K


We are in a position due to a Redundancy and an Inheritance to have approx €300K in cash.

Employment History

Husband to be made redundant but hoping to get a new job soon.

Me - Permanent Position with salary of €38k


How best to go about purchasing new house and selling old one and dealing with the negative equity.

Please bear in mind we haven’t approached any banks yet.


Option 1.

• Purchase & Decorate new house with the €300K.
  
  
• Put old house up for sale while awaiting completion of new build
  
  
• Approach bank to see if Negative Equity portion of mortgage can be moved to new house.
  

Option 2

• Pay off outstanding mortgage on 3 Bed Semi with the €300k cash leaving €165K
  
  
• Approach bank about mortgage of €135k for new house (added 25k for house decoration)
  
  
• Buy and decorate new house with €166 cash and €135K mortgage
  
  
• Sell 3 Bed Semi and make lump sum payment on the €135k mortgage leaving mortgage of approx €35K
  

Any other options or opinions we would be delighted to hear.