Selling at neg equity and buying again

Chunkylover

Hey all, not sure if Im posting in the right section but here goes anyway

Is it possible to sell your house while it is in negative equity (about 50k) and buy another for 30k less than your original mortgage, basically just transferring the mortgage over to a new property, granted I know that I would have to stump up the fees, duty and deposit again, but apart from those things would a bank be willing to swap the mortgage over

Thought Id ask here before I hassle someone in the bank

mrgaa1

you'd have to clear the original mortgage first

Kipperhell

It is possible to sell and buy a new property you cannot transfer your mortgage AFAIK.

If the bank would give you the mortgage for the new property it shouldn't be a problem once you have paid them back the previous loan. Not many people have the cash floating around to do it.

However using a rough guide of 210k property it would be 200k mortgage you sell the house for 150k so you pay the additional 50k you owe the bank. you then buy a new house for 170k but stricter regulation means you might need a bigger deposit of 10%=17k. So you would need 67k cash without a mortgage.

Essentially what ever negative equity you have gets added to the cost of the new house plus fees. Banks don't like the idea the mortgage to house price ratio to be out of whack so unless you have the cash they won't do it with the loan.

If you needed to sell your house quickly expect a bigger loss than 50k. A lot of people would say you are better off selling the house taking the loss and then buying in a few years as you will get more for your money. 2 years rent plus a 50k loss be about 75k, but if the new house you want to buy drops even just more than the rent you will be doing fine some say it will drop more so if it goes down below your 75K you will save money. It is all a gamble

iguana

Not at the moment. In the UK during the last crash banks started allowing customers to this and recently Nationwide(UK) has made moves to allow people to do this again. It's possible that Irish banks will start to make arrangement to allow people to do this. So I would suggest that you should approach the bank about this. They may not allow it now, but the more people who approach them, they more likely it is that they will in the future.

Senna

Talk to your bank, short selling isn't really allowed by any bank at the moment, but its something that will happen soon.
If your in secure employment and the monthly mortgage payments are only a small percentage of your wages, its possible a bank may allow it now.

D3PO

using your figures i cant understand why you would consider it.

sell and be 50k out of pocket then buy and have 30k less of a mortgage so your still 20k worse off plus you have to pay fees, stamp duty etc

or maybe im reading your post wrong ?

c montgomery

Im in the same boat OP.

Bought an appartment 3 years ago for 300k.
At the time i did not plan on having kids for at least 10 years but even so there's one on the way in a few months.
The appartment is fine but with no garden or common areas and neighbours that can be noisey i feel i need to move. I will prob have to rent it out due to the fact that its only worth about 220k now (neighbour sold up last week for this) and have very little savings.

I have seen a house for 220k that i like with a garden and common areas that i would love to buy. I can still afford to pay the mortgage on 300k loan.
I guess im asking the same qquestion as you OP, can i take my negative equity with me to a new property??

astrofool

You need to talk to your mortgage holder, it is possible to do, but it's entirely at their discretion, not yours.