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Lenders move to offer "Negative Equity Loans"

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    #32
    20goto10
    Registered Users Posts: 1,210 ✭✭✭20goto10


    blue_steel wrote: »
    When I say 200K I mean 200K of NE not the original asking price. 200K of property value that is going to take a hell of a long time to come back.

    But the whole point is they will not have to wait for the value of their property to bounce back. They can move and take their negative equity with them.


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    #33
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    Mark my words.... a tiny percentage of the people who are in negative equity will qualify for such a mortgage. And I can guarentee you that it will be restricted to professionals only (i.e accountants, doctors etc). The ordinary 5' 8th won't be offered these mortgages.

    For me the jury is out on whether negative equity mortgages are a good or bad thing.


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    #34
    loyatemu
    Registered Users Posts: 14,918 ✭✭✭✭loyatemu


    the banks are in a deep hole, and the new regulator is keeping a much closer eye on them. They're not going to do anything thats going to increase their exposure (this is why they aren't lending to anyone for anything right now).

    Its difficult enough to get an ordinary 80% mortgage - the amount of these negative-equity mortgages they give out will be minimal.


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