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Mortgage

  • 02-11-2014 9:40pm
    #1
    The Gar
    Registered Users, Registered Users 2 Posts: 11 ✭


    Hi all,
    I have applied and received planning permission for a house. So the house is going to cost €240 k to build and we have 30k savings. I do have a house to sell but I would like sell it after the house is built which should release 60k capital which I would put into the house. As I know I would not pass a test to have 2 mortgages at the same time my question is. Is it possible to get a mortgage to build without selling the original house with the agreement of a bank ( sort of bridging finance)
    Cheers.

    Cheers


Comments

  • #2
    ShowMeTheCash
    Registered Users, Registered Users 2 Posts: 2,651 ✭✭✭ShowMeTheCash


    The Gar wrote: »
    Hi all,
    I have applied and received planning permission for a house. So the house is going to cost €240 k to build and we have 30k savings. I do have a house to sell but I would like sell it after the house is built which should release 60k capital which I would put into the house. As I know I would not pass a test to have 2 mortgages at the same time my question is. Is it possible to get a mortgage to build without selling the original house with the agreement of a bank ( sort of bridging finance)
    Cheers.

    Cheers

    240 to build, how big is the house?

    When you say should release 60K capital, how much do you owe on your current mortgage and how much to you reckon your current house is worth?

    You are kind of stuck in a catch 22, the bank will look at risk. What your house is worth might not really factor into it until it is actually sold.

    Bank lends you the money - Housing market takes another tumble your built house is now worth 180 and you have blown your 30K savings plus 210 from the bank now -30K and the house you thought would would sell at +60 you break even on.

    The bank will look at the combined debit of both properties and probably look to see if you can afford to pay the mortgage on both comfortably.


  • #3
    rambojon
    Banned (with Prison Access) Posts: 213 ✭✭rambojon


    Hi all, I'm looking for some advice on this as a friend and I have little knowledge of banking language .. Here goes.. He's on a tracker with forthnightly repayments. Got aletter recently to say once completion date on contract is reached there will be a sum of money owed . Now he has never been late with repayments and has had no issues with mortgage from day 1.. Can this be..


  • #4
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    You need to provide more information in order to find out if your proposal is doable or not. Are you currently on a tracker mortgage and what interest rate are you paying on that mortgage and amount outstanding. Are you applying in single or joint names and if so what are your ages and income and how many dependents do you have. Do you have other borrowings and if so what are repayments.


    The Gar wrote: »
    Hi all,
    I have applied and received planning permission for a house. So the house is going to cost €240 k to build and we have 30k savings. I do have a house to sell but I would like sell it after the house is built which should release 60k capital which I would put into the house. As I know I would not pass a test to have 2 mortgages at the same time my question is. Is it possible to get a mortgage to build without selling the original house with the agreement of a bank ( sort of bridging finance)
    Cheers.

    Cheers


  • #5
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    Contact his bank and ask them for an explanation in writing.

    rambojon wrote: »
    Hi all, I'm looking for some advice on this as a friend and I have little knowledge of banking language .. Here goes.. He's on a tracker with forthnightly repayments. Got aletter recently to say once completion date on contract is reached there will be a sum of money owed . Now he has never been late with repayments and has had no issues with mortgage from day 1.. Can this be..


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