Remortgage advice

informant5

Hi long time lurker first time poster! Iown my house outright and I want to upgrade to a larger home. I went to ulsterbank to see what kind of a mortgage they would offer me, they weren't interested in me having a house as collateral.just what deposit I had and how much I made. I do not have a deposit saved and the house I wanted was going for 385k so I need 20% of that. I was hoping not to have to sell my current house, but instead remortgage it for about 200k it's worth 240-250k and then rent it out to pay the remortgage. I also planned on giving my family about 100k and use the rest for the deposit for the next house.

Are there any banks that would be interested in remortgaging my house and doing a mortgage deal for the new house?
Am I better to sell my current house and buy the new house?
What kind of tax would I be liable for if I sold or got the remortgage?
Can I give tax free gifts to my family?

Gumbo

If the new house is 385k and you want a mortgage of 200k but you state you have no deposit, how will you pay the balance of 185k?

To me, it sounds like you have your figures mixed up as we bought a second house this year with Ukster Bank but we had the deposit required just before the new CB rules kicked in.

matt-dublin

Kind of sounds like you will need to sell and rebuy.

Banks won't be interested now unless you have your 20% upfront deposit as they can't take the risk on the loan. You can't offer another house up as collateral as the good old days are gone.

If you want to keep your current house to let out you will simply need to Find the 20% deposit.

matt-dublin

Also to note, remortgaging your existing house would impact your potential borrowings on the new house. You won't be able to get 2*200k odd mortgages on your own unless you're earning over 100k a year.

The rental income doesn't count towards income on a residential loan as its not a guaranteed income.

informant5

kceire wrote: »

If the new house is 385k and you want a mortgage of 200k but you state you have no deposit, how will you pay the balance of 185k?

To me, it sounds like you have your figures mixed up as we bought a second house this year with Ukster Bank but we had the deposit required just before the new CB rules kicked in.

I was going to put the 100k down as a deposit on the new house and get a mortgage for the difference. Then rent out the current house to pay back the remortgage.

informant5

matt-dublin wrote: »

Kind of sounds like you will need to sell and rebuy.

Banks won't be interested now unless you have your 20% upfront deposit as they can't take the risk on the loan. You can't offer another house up as collateral as the good old days are gone.

If you want to keep your current house to let out you will simply need to Find the 20% deposit.

Do you know how much tax I would have to pay if for example I got 240k for my current house? Does capital gains apply if I sell family home to buy another family home?

Danielle D

informant5 wrote:

Do you know how much tax I would have to pay if for example I got 240k for my current house? Does capital gains apply if I sell family home to buy another family home?

CGT does not apply to Principal Private Residence so you would not be charged capital gains

matt-dublin

No tax implications. Even if it wasn't your PPR and you owned it longer than 7 years I think CGT doesn't apply.

CGT would only apply if you only owned the house as your PPR for less thank a year afaik.

The only tax you will be liable for will be stamp duty @ 1% on the new property.