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Trading up, difficult to get mortgage?

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  • 17-06-2010 3:02pm
    #1
    Wibbler
    Registered Users Posts: 411 ✭✭


    I'm curious about how the current economic outlook is affecting access to mortgages for folks who want to trade up.

    For someone trading up who has a mortgage and is in the lucky position of:

    * Not needing to borrow additional money
    * Not needing to change the term
    * Having a job
    * Never been in mortgage arrears

    is the current credit crunch likely to affect their chances of closing the existing mortgage and taking out the new one?


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    #2
    JoeyJJ
    Registered Users Posts: 3,663 ✭✭✭JoeyJJ


    I don't know your answer but i'd expect that they would value the property to assess to see if you could be in negative equity from their evaluation which may differ from yours/the ea's. Seeing as you are providing the extra equitity it might suit them as your LTV ratio may decrease.


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    #3
    Wibbler
    Registered Users Posts: 411 ✭✭Wibbler


    JoeyJJ wrote: »
    Seeing as you are providing the extra equitity it might suit them as your LTV ratio may decrease.

    Good point. I'd considered this, but was also wondering is the mortgage market so borked that even that wouldn't be enough. I mean if the banks won't lend to profitable business what chance do the rest of us have?

    We have an existing mortgage, but my understanding is that when you sell a mortgaged property the bank is paid from the proceeds and the mortgage is closed, so we'd be starting again, probably with a new lender.


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