Hello! A house has come up for sale close to where we currently live, and it looks very attractive - lots of work/extensions done that we had planned to do in future. With current materials costs and difficulty in securing contractors, we are considering selling and moving (rather than renovating current house).
We are currently 2 years into a 4 year fixed green mortgage with Haven at 2% interest rate. The lowest fixed I can find on the market now is 3.55% with Haven on a 4 year fixed green mortgage (new house is BER B3). €270k outstanding on mortgage - current house value approx €470k, new house advertised for €550k.
I spoke with Haven and they have told me that they do not facilitate house moves - we would need to pay off the existing mortgage in full, with whatever penalty break fee is due (although it may be 0), and re-apply via broker for a new mortgage.
Is it a mad time to make a change like this - exit a 2% mortgage to get into a new mortgage at 3.55% (or more)? In reality, with €200k surplus after the sale of the current house, we would need a mortgage of €350k to €370k, taking out €100k of new debt with the higher interest rate.
Appreciate your thoughts!