Older chap trading up seeking mortgage

[Oscar Wilde]

Hi Chaps,
Am 49. I have ca. 350K equity in existing small 3 bed and want to trade up. Currently have tracker with outstanding balance of ca. 100K with 9 years left to run on rate of 0.6% with AIB. No other debts.
My wife is 42. and is back in work for the past 10 months.

I was interested in houses in the 700K range.
I've initialed tried talking to AIB but run into difficulty.
Their first response was they'll only give a 15 year mortgage - which kind of screws me as the repayments will be huge.
I told them KBC allow up to 68 (69 years old). They have not responded to that.
I am not sure if I need to give them some letter / undertaking that I will continue to work until then - my employer simply does not have a compulsory retirement age (however they do stop matching pension / stop death in service at age 65)

I initially was advised that I should retain my tracker.
However the way that works is the term of the existing mortgage remains the same - the rate now becomes 1.6% and the new mortgage is spread over the entire term.
i.e. I was quoted 2.5K per month for the first 9 years then reverting to 1.5K.
Basically it is not looking possible for me to ever move - certainly not to retain the tracker as this would result in impossible repayments for the first 9 years.
I guess it is not possible for them to somehow spread out the repayments over the full term.

I do have a Defined Contribution pension which projects to be 380K at retirement.
I am not sure if AIB would take that into consideration - i.e. I could take a 25% of the projected at 65 to clear the mortgage.
Does anyone have any insights on the above?
KRgds
Oscar

 

[cremeegg]

First of all at just 49 enough with the "older chap".

You want to borrow €350k (€700-€350), with AIB you can get €100k of that at 1.6% you would have to pay market rate on the balance. The tracker mover rate is saving €2,400 per annum versus a market rate of say 4%.

You don't mention what your and your wife's income is. Nor how secure you employment is. Are you in a position to repay nearly €2k a month for the next 20 years ?

 

[Oscar Wilde]

First of all at just 49 enough with the "older chap".

You want to borrow €350k (€700-€350), with AIB you can get €100k of that at 1.6% you would have to pay market rate on the balance. The tracker mover rate is saving €2,400 per annum versus a market rate of say 4%.

You don't mention what your and your wife's income is. Nor how secure you employment is. Are you in a position to repay nearly €2k a month for the next 20 years ?

Thanks for your reply. It is secure employment.
My income is 90K plus a 15% annual bonus. My wifes is 40K plus a 5% annual bonus.
I believe I can pay the 2K a month however I think I will struggle to pay 2.5K a month every month or be able to prove that to AIB either.