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Negative equity and looking for a personal loan

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  • 05-10-2011 2:36pm
    #1
    Headwrecked34
    Closed Accounts Posts: 8 ✭


    Hi All

    Im looking for some badly needed advice. I bought a house in early 2004 for €235,000, myself and my partner broke up a year later and I used the equity release scheme with PTSB to buy him out with €40K. My currently mortgage repayments are €1708 at a rate of 5.75% and I have 18 years left on my mortgage. I am currently not in arrears nor have I ever been. I have not taken a payment break or extended the term. I really want to sell but understand that their is a shortfall which I am more than willing to take as a personal loan over 10 years. I have contacted PTSB about selling my house and they have given me permission to put it on the market and said they would discuss an arrangement with me but only if the house goes sale agreed. I have a financial analyst dealing with the bank on my behalf.

    My partner has moved to the UK (he is not on the mortgage) and I plan to follow him over once I get rid of the house, obviously subject to me getting a job please god.

    My family think I am absolutely nuts even to be considering selling the house but thats easy for them to say as there not the ones struggling but I come off a fixed rate soon and the only option available to me is 6.05%. I lie in bed awake at nite stressing about whats ahead in the future and thats no way to live.

    The house is currently on the market for €199K and Id expect Id be lucky to get 25K less than this giving me a shortfall of 55K approx.

    Am I mental to take out such a loan??. I want to be able to go the UK without looking over my shoulder and am perfectly able to afford the repayments even if I have to rent here for a while before going, the total would be less than what im paying at present.

    There is absolutely no future for us here and its not an option for him to come over.

    Is there anyone else out there who has done this - I feel no attachment to my house and would be relieved to be rid of it if Im lucky enuf.

    Thank you for taking the time to read my ramblings.

    D


Comments

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    #2
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    the bank will likely allow you do this. The fact they said they will discuss it if you get an offer would indicate that.

    Your crystalising your losses yes but your also limiting them which given they outlook on property in this country is a good thing especially if your thinking of moving abroad.

    a few things though. If you are happy to take 175k then FFS dont price it at 199. Price it at 185 you still ahve room for negotiation and its more attractive to potential buyers

    secondly if you cant sell what about extending the term and renting it out ? I dont know your age etc but potentially you could stretch the term to 28 years instead of the current 18. That would bring the repayments way down enough perhaps for you to be able to rent it out to lessen the monthly burden on yourself.

    either way the best of luck


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