Currently my wife and I have a house each which we purchased individually (2006 & 2007) before we got married. Since getting married we are living in one of the houses and the second house is rented out.
Both houses are in negative equity ( 90,000 and 40,000). Standard Variable rate on both mortgages of ~ 4% and total mortgage amount of 400,000 for both properties
We would like to move out of our existing house some time in the near future( within next 2 years preferably) There is a strong rental market for both houses - 700 & 900 euro per month.
Income
Savings of 120,000
Expenses
No loans except for mortgages. No children.
We are trying to figure out our best options that are open to us:
If we were to trade up, the cost of the new house would be around 250,000. This is what we both want to get to.
Both houses are in negative equity ( 90,000 and 40,000). Standard Variable rate on both mortgages of ~ 4% and total mortgage amount of 400,000 for both properties
We would like to move out of our existing house some time in the near future( within next 2 years preferably) There is a strong rental market for both houses - 700 & 900 euro per month.
Income
combined salary of 115,000 a year before tax
rental property of approx 10,000 before tax.
rental property of approx 10,000 before tax.
Savings of 120,000
Expenses
No loans except for mortgages. No children.
We are trying to figure out our best options that are open to us:
If we were to trade up, the cost of the new house would be around 250,000. This is what we both want to get to.
- Is it best to keep our saving as cash and put it towards the new house which would result in another mortgage of 130,000.
- Rent out the existing houses and use the rental income to service the existing loans.
- Would a bank be willing to lend for another mortgage of 130,000 on top of existing loans