Looking to move from our current house in Dublin to a slightly more desirable area. Rough sums would be as follows:
Sell current house for 400k (2 separate EAs said we'd have no problem getting this amount)
Currently owe 190k (with that reducing month on month by about 1k) on the house so we'd be coming out with about 210k
Looking for a mortgage of about 250k
Houses we're looking at would be in the 470/480 mark.
We have savings of about 40k which would cover the shortfall to 470/480 plus cover estate agent, solicitor, etc fees
All that seems fine until we come to the deposit. I had presumed that the equity in the current house would cover that but from reading up on it, it looks like I need 20% deposit up front. That would be the guts of 100k. Is this the case? I've also seen that bridging loans are no longer a thing. So how do others in a similar position manage (other than looking to parents for a loan).
Have a chat to your bank but AFAIK the proceeds of the current house sale should be sufficient. My SIL is trading up right now and they've got nowhere near 20% of the new purchase price but there's enough equity in their current house to cover it.
We bought our second home at the end of last year. Mortgage was with BOI and we had no issue using equity in our old house as deposit for our new house. The deposit was taken out of the funds we received for the house we sold and this was transferred to our vendor along with the balance (mortgage) on the day we exchanged. The remaining equity was transferred to us (minus solicitor and auctioneer fees) The only money we transferred in advance of closing was a holding deposit which we transferred to our solicitor and they held on to that until we exchanged. That was 10k IIRC
Thanks for that. So did this all happen essentially on the same day, as in you got the money for your old house and used that to pay for the new house all on the same day?
Yes everything happened on the one day. It's a bit of a hectic day as you have to get out of your old house and into your new house in one day! But you solicitors will sort all the finance stuff and you will get your keys/leave your keys with them. It's really common so let them worry about getting that end organised - that's what you're paying for - and you worry about getting your stuff moved all in one day!
Thanks for the info. Very much appreciated.