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Mortgage on a house I own outright??

  • 07-09-2020 10:56am
    #1
    Dow99
    Registered Users, Registered Users 2 Posts: 275 ✭✭


    My current situation is that I have a house with a mortgage that is about €30k in equity. I am intending on buying an old house that is in need for renovation with cash savings & own it outright.


    In the mean time, I'll put the house with the mortgage on the market and hopefully sell it. Can I then switch my mortgage to the new house to fund the renovation work? I am currently on a tracker mortgage with AIB. They do offer switcher for 1% over the current tracker rate. But would they do this on a property I own outright?


Comments

  • #2
    HeidiHeidi
    Registered Users, Registered Users 2 Posts: 30,039 ✭✭✭✭HeidiHeidi


    As far as I know each mortgage is independent.


    You'd have to pay off the mortgage on your existing property, and apply a new one assessed on the new house and your plans for it.


    Switching is for moving a mortgage on the one property.


    That's my understanding anyway.


  • #3
    BronsonTB
    Registered Users, Registered Users 2 Posts: 1,905 ✭✭✭BronsonTB


    Check with whoever you have the current mortgage with but normally, you would have to pay off the existing & then take out a new mortgage. (No tracker)

    Sligo Metalhead



  • #4
    jlm29
    Registered Users, Registered Users 2 Posts: 3,818 ✭✭✭jlm29


    You can buy the house with cash, and then take out a mortgage against it to get the funds to renovate it. It’s a bit of a faff. It might be easier to take out a mortgage to buy the house and use your funds for the renovations!


  • #5
    HeidiHeidi
    Registered Users, Registered Users 2 Posts: 30,039 ✭✭✭✭HeidiHeidi


    jlm29 wrote: »
    You can buy the house with cash, and then take out a mortgage against it to get the funds to renovate it. It’s a bit of a faff. It might be easier to take out a mortgage to buy the house and use your funds for the renovations!
    If the house is in a state, it may not currently have the value in it to raise a mortgage against it.


  • #6
    Dow99
    Registered Users, Registered Users 2 Posts: 275 ✭✭Dow99


    jlm29 wrote: »
    You can buy the house with cash, and then take out a mortgage against it to get the funds to renovate it. It’s a bit of a faff. It might be easier to take out a mortgage to buy the house and use your funds for the renovations!

    I dont think I'd get enough money from the bank to continue my own mortgage + one to cover the cost of the new one.



    Its a 1940's bungalow & all though its been lived in until recently it does need to be fully renovated for modern living & our needs.


    But as you say its a bit of faff. I'm considering a mortgage advisor to navigate this as I'd really like to hold on to the tracker I have.


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  • #7
    Housebuying
    Registered Users, Registered Users 2 Posts: 54 ✭✭Housebuying


    Dow99 wrote: »
    I dont think I'd get enough money from the bank to continue my own mortgage + one to cover the cost of the new one.



    Its a 1940's bungalow & all though its been lived in until recently it does need to be fully renovated for modern living & our needs.


    But as you say its a bit of faff. I'm considering a mortgage advisor to navigate this as I'd really like to hold on to the tracker I have.

    It's really a pain. You need to have an architect and funds are released in stages. You should at least try to purchase the cottage with a mortgage. If you say there isn't the value for a mortgage, then the same will apply for the renovations. You may be stuck with a house and no cash to renovation. They calculate the funds on what the house will be worth once the renovation is complete.


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