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Changing homes

  • 10-08-2018 1:11am
    #1
    Tomripley
    Registered Users Posts: 21 ✭


    I have a mortgage. 12 years in to 30 year contract. There may come a time soon rather then later that I’ll have to sell and move to a new area.

    I wish to know... in this current mortgage as with any the first several years are front loaded with interest so see the loan hardly go down. I had a 250k mortgage let’s say now it’s 190k

    If I was to sell and got enough to cover mortgage on current house would i have to start from scratch again buy a new place over 30 year and be front loaded again or is is possible just to just carry the mortgage across and pay what I’m paying now for 18 years. That’s to say I’d sell my place now for 190k buy a place for 190k.


Comments

  • #2
    Lumen
    Registered Users Posts: 31,008 ✭✭✭✭Lumen


    The interest isn't front loaded as such, but the interest part of your monthly payment becomes smaller over time because your principal is getting smaller.

    You can get a new mortgage for a shorter term to match the end date of your current mortgage but the interest rate and terms may be worse than what you have right now.


  • #3
    Vim Fuego
    Registered Users Posts: 743 ✭✭✭Vim Fuego


    If you're on a tracker, you could retain that rate. Different banks have different policies on that but I know that AIB tracker retention means you pay the mortgage back over the same existing term with 1% added to the interest rate.


  • #4
    Gumbo
    Moderators, Society & Culture Moderators Posts: 38,359 Mod ✭✭✭✭Gumbo


    Tomripley wrote: »
    I have a mortgage. 12 years in to 30 year contract. There may come a time soon rather then later that I’ll have to sell and move to a new area.

    I wish to know... in this current mortgage as with any the first several years are front loaded with interest so see the loan hardly go down. I had a 250k mortgage let’s say now it’s 190k

    If I was to sell and got enough to cover mortgage on current house would i have to start from scratch again buy a new place over 30 year and be front loaded again or is is possible just to just carry the mortgage across and pay what I’m paying now for 18 years. That’s to say I’d sell my place now for 190k buy a place for 190k.

    Current Mortgage is 190k
    Lets say you sell for 200k

    You pay the 190k to bank, then you pay the solicitor and estate agent and BER Cert Assessor. You will be lucky to have maybe 1-2k remaining.

    Now you want to buy again, you will need 20% deposit for the new house and the term can be determined by how much you can pay per month against your age.

    Some banks allow transfer of trackers, but you have to confirm this with the bank your dealing with.

    The big hurdle here will be the 20% deposit for the next house.


  • #5
    GingerLily
    Registered Users Posts: 4,767 ✭✭✭GingerLily


    If the mortgage amount is fixed then the differences will be in the term and the rate.

    You'll usually get a lower rate with a lower LTV, I assume you'll have a deposit - from savings or the sale? You need 20% deposit or an exemption - there aren't many left.

    If you increase your term you'll be paying more in interest, so if you want to start paying down more of the capital then go for a shorter term.


  • #6
    mariaalice
    Registered Users Posts: 12,356 ✭✭✭✭mariaalice


    There is nothing to stop you taking out a 15,20,25,30 year mortgage except the cost you don't have to take out another 30-year mortgage.


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  • #7
    draiochtanois
    Registered Users Posts: 2,655 ✭✭✭draiochtanois


    This post has been deleted.


  • #8
    myshirt
    Registered Users Posts: 5,245 ✭✭✭myshirt


    The short answer is yes. You can pay the 190 off over the next 18years. You don't need another 30 year mortgage.

    As to this idea of interest being 'front loaded', interest is always 'front loaded'. Think about it this way, you rented out 250k off the bank. When you do this, they are short 250k, so they obviously will want to be paid for renting it out to you. So you not only owe them the 250k of course, but for every day you have it rented out you will have pay rent.


  • #9
    Gumbo
    Moderators, Society & Culture Moderators Posts: 38,359 Mod ✭✭✭✭Gumbo


    mariaalice wrote: »
    There is nothing to stop you taking out a 15,20,25,30 year mortgage except the cost you don't have to take out another 30-year mortgage.

    Yes there is, the Bank will determine if you can go longer as the limit is usually retirement age for your given age bracket.

    They don't want you having a mortgage while on OAP Pension.


  • #10
    Tomripley
    Registered Users Posts: 21 ✭Tomripley


    kceire wrote: »
    Yes there is, the Bank will determine if you can go longer as the limit is usually retirement age for your given age bracket.

    They don't want you having a mortgage while on OAP Pension.

    Aye this is true. I work hard and want to retire young as possible. Been paying into pension from 19 avc as well. I want to be mortgage free by 50


  • #11
    Gumbo
    Moderators, Society & Culture Moderators Posts: 38,359 Mod ✭✭✭✭Gumbo


    Tomripley wrote: »
    Aye this is true. I work hard and want to retire young as possible. Been paying into pension from 19 avc as well. I want to be mortgage free by 50

    In the same boat. Joined the work force in 2001. Just missed the SSIA thing so opened a PRSA in 2002. Stopped paying into it in 2009 as I joined the PS but immediately opened up an AVC to top up the “gold plated pension”.


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  • #12
    JoeA3
    Registered Users Posts: 7,405 ✭✭✭JoeA3


    Going by recent conversations with banks myself, an applicant in their early 40’s can still avail of ~30 year mortgages... bit scary that many of us could be paying mortgages well into our late sixties.


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