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Mortgage Query

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  • 07-07-2015 9:40am
    #1
    jgally
    Registered Users Posts: 89 ✭✭


    I have a fair idea of the answer but I'm going to ask anyway for peace of mind....

    I currently have a mortgage balance of 140k @ 2.55%

    My wife and I would love to build though, we have saved about 30k and estimate that 240k should buy our site and build the house we would like.

    If I was to get another mortgage the interest rates would be a lot more than 2.55%

    So my question is:

    Is it possible to sell my house for 140k (what its worth now) and use that towards the new build & borrow 100k off of the strength of the 30k to make up the difference.

    Ideally ending up with

    140k @ 2.55%
    100k @ 4.5+ %

    If this is a stupid question apologies.


Comments

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    #2
    Sniipe
    Registered Users Posts: 2,932 ✭✭✭Sniipe


    Interesting question, I'd like to know the answer to this also.


  • Options
    #3
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Majority of the banks now offer a moveable tracker product however they all differ in what they offer so need to know who your mortgage is with at the moment.

    Trish
    jgally wrote: »
    I have a fair idea of the answer but I'm going to ask anyway for peace of mind....

    I currently have a mortgage balance of 140k @ 2.55%

    My wife and I would love to build though, we have saved about 30k and estimate that 240k should buy our site and build the house we would like.

    If I was to get another mortgage the interest rates would be a lot more than 2.55%

    So my question is:

    Is it possible to sell my house for 140k (what its worth now) and use that towards the new build & borrow 100k off of the strength of the 30k to make up the difference.

    Ideally ending up with

    140k @ 2.55%
    100k @ 4.5+ %

    If this is a stupid question apologies.


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    #4
    phormium
    Registered Users Posts: 3,301 ✭✭✭phormium


    If your lender does not have some sort of mover tracker product that you can use then it is not possible to sell your house and keep the money for the new one. The house sale could not go through as the bank would not release the deeds without the mortgage being paid off with the sale proceeds.


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    #5
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    That's correct you cannot sell your property and keep the proceeds to put towards a new property. Lenders are offering moveable trackers however they will add on circa 1% or more to the current tracker rate so in your case they would charge you 3.55% plus on the 140k over remaining term and loan to value variable rate on the balance.

    Depending on the loan to value on the completed property you can avail of rates as low 3.50% variable. Only disadvantage is they can increase variable rate when they like while tracker is linked to ECB which is currently at 0.05% so only way is up.

    phormium wrote: »
    If your lender does not have some sort of mover tracker product that you can use then it is not possible to sell your house and keep the money for the new one. The house sale could not go through as the bank would not release the deeds without the mortgage being paid off with the sale proceeds.


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    #6
    jgally
    Registered Users Posts: 89 ✭✭jgally


    Thanks Trish


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