advice on moving house

doctorchopper

Looking for some advice on moving house. We currently own a semi detached house in south dublin, approx value of 410000, we owe around 70000 left on a tracker mortgage. We both work and have decent incomes. We want to get a detached house with a large garden and ideally a large workshop or space to build one. we would be looking for something up to 650000. The big question is how to time a sale and a purchase without having to get temporary accommodation as with the 2 large dogs i fear it would be impossible. Any suggestions. Also would a large deposit be required even though we have approx 340000 equity in our current house

johnnyskeleton

As long as you explain to all parties that youre in a chain, so there could be a few weeks difference, your solicitor will sort it out so that your new home closes a week or two before the old one is sold, giving you time to move.

A piece of general advice - if youre involved in transactions worth 100s of thousand of euro to buy the house you will live in for the forseeable future, I wouldnt be overly concerned about a few weeks inconvenience and expense having to get temp accommodation etc. In the worst case scenario, youcan leave the dogs in a kennel until the move is complete.

Plus, if you are getting the new mortgage with the same bank i.e. partially moving the tracker, they will be more than willing to work with you on the chain sale. i presume the 340k or most of it will be your deposit anyway?

doctorchopper

All that was exactly what i was thinking, I'd just be worried that the future house would also be in a chain and that might delay the purchase, I wouldn't mind putting the dogs in a kennel short term, couple of weeks would be fine and we could stay with relatives for a short term. I checked into the transfer of the remaining balance for the tracker mortgage and that doesn't seem to be a problem and yes we would use almost all of the remainder equity as the deposit, but was wondering if the bank would wave the 10% deposit of the new purchase based on the sale of our current house and that 340000 ish going towards the new purchase or would they be looking for the 10% up front

johnnyskeleton

doctorchopper wrote: »

All that was exactly what i was thinking, I'd just be worried that the future house would also be in a chain and that might delay the purchase, I wouldn't mind putting the dogs in a kennel short term, couple of weeks would be fine and we could stay with relatives for a short term. I checked into the transfer of the remaining balance for the tracker mortgage and that doesn't seem to be a problem and yes we would use almost all of the remainder equity as the deposit, but was wondering if the bank would wave the 10% deposit of the new purchase based on the sale of our current house and that 340000 ish going towards the new purchase or would they be looking for the 10% up front

They look at the deposit from two points of view:

1. The amount of the house purchase that will be fronted by yourselves as opposed to that which is covered by the mortgage (your "equity"); and
2. Where does the money come from.

So sometimes a bank will not consider something to be a deposit if it is a gift from a parent or something, but I can't imagine you have anything to worry about. They will say:

House costs 650k and they will want a minimum 20% deposit (for example). So they will want to see that you have at least 130k to put into the house purchase (plus legal costs, stamp duty, any repairs, furnishings etc). Thereafter, they will probably lend you up to the remaining 520k if your salaries can bear it. 70k of that will be the tracker moving over, and 450k will be a new variable rate.

However, if you want to put more of the first house sale proceeds into the new house, I'm sure they would be delighted e.g. you pay 325k or 50%, keep 15k aside for costs, furniture etc and then loan you 325k (70k tracker plus 255k variable).

While I can't speak for your bank, I'd be pretty confident that they would not want another 10% on top of that.