second mortgage

Have a house since 2005, got a AIB tracker mortgage. Current value of the house is around 200-210, mortgage is 220k, so slightly in negative, repayments 1k per month.

I earn 92k, partner 40k. Have savings of 150k + 20K. Have mortgage approval for 350k from BOI. Kind of want to get another property to live in and just rent out the house we're in at the moment, as its a bit small. Would like to keep it, as a small investment.

Bit worried about interest rates and Greece and buying in the middle of another bubble. Also worried about invalidating conditions of tracker by renting out. Any thoughts?

€700k of property and €570k of mortgages is too big an exposure to the property market and interest rate increases. Why worry about Greece and whether we are in another bubble or not? Why worry about whether your jobs and incomes are secure?

Simply transfer your tracker mortgage to your new home.


Your new mortgage is still almost three times your income and 75% loan to value. Most people would consider that very high levels of borrowing.

You will have €220k on a slightly more expensive tracker.
You will have €150k at AIB's new business rate

Use your current high income to pay down the expensive mortgage to a more comfortable level.

Alternatively, stay where you are a bit longer as your mortgage is so cheap. Keep saving and you will have even more equity when you trade up.

We don't allow speculation about house prices on Askaboutmoney, but if you think that we are in another bubble, then staying where you are is the best strategy. You will have very big savings when the bubble bursts and you will be able to buy your new home for a lot less than €500k.

Can you port the tracker? I mean would AIB let me keep a portion of the mortgage (220k) as tracker and get another portion (130K) at a variable rate? If that was possible, its definitely my preferred option I think.

Yes. they charge you 1% extra on the ported tracker.

http://www.askaboutmoney.com/threads/summary-of-aib-ebs-haven-tracker-mover-product.187831/

very interesting post. Especially where you linked at the end... "Read the following LINKTO:tracker-interest-rate-mortgage"

Didnt know that was an option. Will meet with AIB on friday.

Thanks