Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Intend to purchase new home from an apartment

Options
  • 15-08-2010 6:59pm
    #1
    bpsai09
    Registered Users Posts: 18 ✭


    Hi i m in a 2bed apartment n d15, wish to move to 3bed semid home, presently i m n tracker.I know i m in negative equity. can anyone advice wat's de procedure 4 it? how it works?


Comments

  • Options
    #2
    ricman
    Closed Accounts Posts: 1,559 ✭✭✭ricman


    Can you afford to pay the difference,between sale price and the mortgage.You,d need to get permission from the bank to sell the house.
    I Dont think theres any specific procedure ,each case is different, depends on your income,and amount of negative equity.


  • Options
    #3
    Treehouse72
    Registered Users Posts: 1,003 ✭✭✭Treehouse72


    Generally, the bank will not allow you sell a property in NE. In some exceptional circumstances if the bank feels your loan and ability to repay it are sufficiently low-risk they may allow it. This is, I believe, pretty rare and in these cases it would normally be if you are trading down rather than up since this would reduce the absolute size of your loan and thus the bank's unsecured risk. Since you are proposing trading up, I think it unlikely the bank will agree.

    If you do pull it off though, it is almost certain you would lose your tracker on your new mortgage.


  • Options
    #4
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    There are only two lenders in the market at the moment who cater to this sort of thing (god, I sound like Dougal from Fr. Ted.......).
    They are Ulster Bank and EBS- and only offer NE mortgages to their own customers (not new customers).

    You really need to talk to your lender to see what exactly the situation is for you.


  • Options
    #5
    bpsai09
    Registered Users Posts: 18 ✭bpsai09


    smccarrick wrote: »
    There are only two lenders in the market at the moment who cater to this sort of thing (god, I sound like Dougal from Fr. Ted.......).
    They are Ulster Bank and EBS- and only offer NE mortgages to their own customers (not new customers).

    You really need to talk to your lender to see what exactly the situation is for you.


    Thanks.

    Could i approach mortagage broker where i got the loan through them. Presently I am with ulster bank.


  • Options
    #6
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    bpsai09 wrote: »
    Thanks.

    Could i approach mortagage broker where i got the loan through them. Presently I am with ulster bank.

    Its my understanding that you would have to approach the lender directly yourself. There is no guarantee that they would agree to offer an NE loan- but where they do- the negative equity associated with your current property is rolled into the mortgage on the new property- so you end up with say (for arguments sake) a 120-130% mortgage on your new property.

    Ulster Bank no longer offer tracker mortgages- so you'd loose this- which is definitely something you should consider- it could make a sizeable difference.

    S.


  • Advertisement
Advertisement