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Would like to move house.

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  • 14-01-2013 10:50pm
    #1
    MikeyReilly
    Registered Users Posts: 121 ✭✭


    Myself and my wife would really like to move house back to the city where we were born. Problem is, like many homeowners, we are in negative equity! We are finding it hard at the moment to meet our monthly repayments. We have only started dealing with our lender(KBC) about our options on reducing our payments.

    An idea I have is that we sell our house, buy a cheaper house and carry over the negative equity to the new property resulting in a slightly smaller more manageable mortgage. I haven't asked our lender about it yet. I know its probably a long shot but to me it seems like a sensible long term option.

    Has anyone on here managed to do this with their lender or tried and failed. If there is any advice anyone could give me I would appreciate it.


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    #2
    Chiorino
    Registered Users Posts: 621 ✭✭✭Chiorino


    MikeyReilly wrote: »
    Myself and my wife would really like to move house back to the city where we were born. Problem is, like many homeowners, we are in negative equity! We are finding it hard at the moment to meet our monthly repayments. We have only started dealing with our lender(KBC) about our options on reducing our payments.

    An idea I have is that we sell our house, buy a cheaper house and carry over the negative equity to the new property resulting in a slightly smaller more manageable mortgage. I haven't asked our lender about it yet. I know its probably a long shot but to me it seems like a sensible long term option.

    Has anyone on here managed to do this with their lender or tried and failed. If there is any advice anyone could give me I would appreciate it.

    In a similar position ourselves, money is tight but we are managing the mortgage. We did approach our lender about doing this (would have brought our repayments down by a third) but they didn't want to know. Made no sense to me. Ended up renting out our home and renting another house, seems to be the only real option at the moment.


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    #3
    the_syco
    Registered Users Posts: 37,300 ✭✭✭✭the_syco


    MikeyReilly wrote: »
    An idea I have is that we sell our house, buy a cheaper house and carry over the negative equity to the new property resulting in a slightly smaller more manageable mortgage.
    Can't see it working. I think you can move into a more expensive house, but not the other way around, as if you have a less expensive house, and the bank takes over the property, there's less of a chance of them getting their money back off it.


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    #4
    Boom_Bap
    Moderators, Music Moderators, Society & Culture Moderators Posts: 25,734 Mod ✭✭✭✭Boom_Bap


    In my last meeting with my lender, I was told that I would be a candidate for buying a new property although my existing house is in negative equity. But the new house needs to be bigger/more expensive. I didn't get into the finer details as I have no firm plans yet for moving.

    This is my scenario.

    Yours may be the same, better or worse. You will never know until you set up a meeting with your lender and provide examples of properties that you are looking at.

    There is also talk of new legislation coming into place, not sure of the specifics or when its supposed to happen. Anyone have info on that?


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    #5
    MikeyReilly
    Registered Users Posts: 121 ✭✭MikeyReilly


    Boom_Bap wrote: »
    In my last meeting with my lender, I was told that I would be a candidate for buying a new property although my existing house is in negative equity. But the new house needs to be bigger/more expensive. I didn't get into the finer details as I have no firm plans yet for moving.

    This is my scenario.

    Yours may be the same, better or worse. You will never know until you set up a meeting with your lender and provide examples of properties that you are looking at.

    There is also talk of new legislation coming into place, not sure of the specifics or when its supposed to happen. Anyone have info on that?

    The fact that you can only do it if you buy a more expensive property to me is ludicrous! We are looking at houses that if we are realistic about what we will get for our own house will only be 20 or 30k less. This is not a lot of business for the bank to lose but would make a big difference to our monthly payments. Would drop our mortgage from 200k to maybe 170k. The point I want to make to them is that why have us struggle to pay the bigger amount with possible arrears in the future when they can drop the amount of the loan a small bit to a point where we can manage our payments much easier. It seems to be a sensible solution to our problems. I hope they can see that as well


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    #6
    djimi
    Registered Users Posts: 13,237 ✭✭✭✭djimi


    MikeyReilly wrote: »
    The fact that you can only do it if you buy a more expensive property to me is ludicrous! We are looking at houses that if we are realistic about what we will get for our own house will only be 20 or 30k less. This is not a lot of business for the bank to lose but would make a big difference to our monthly payments. Would drop our mortgage from 200k to maybe 170k. The point I want to make to them is that why have us struggle to pay the bigger amount with possible arrears in the future when they can drop the amount of the loan a small bit to a point where we can manage our payments much easier. It seems to be a sensible solution to our problems. I hope they can see that as well

    I would imagine the stance they will take is that while youre not in arrears and are presumably not missing payments (correct me if Im mistaken?) then why should they be expected to take a financial hit or possibly an increased risk in order to help you? It may sound harsh but they are a business at the end of the day.


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    #7
    MikeyReilly
    Registered Users Posts: 121 ✭✭MikeyReilly


    djimi wrote: »

    I would imagine the stance they will take is that while youre not in arrears and are presumably not missing payments (correct me if Im mistaken?) then why should they be expected to take a financial hit or possibly an increased risk in order to help you? It may sound harsh but they are a business at the end of the day.

    No we are currently not in arrears but did fall into them last year. Part of our mortgage contract was that we could go interest only for a minimum of three months at a time. We were looking to do this last year but there was a bit of a mix up and it was never applied to our account. So it fell into arrears and took months to sort out. A company that was normally very easy to deal with were suddenly a pain in the back side. We finally got it sorted out and backdated the interest only and that covered some of the arrears. The rest were capped on the mortgage.

    Out situation now is that our interest only period is now coming to an end and we will struggle to meet the full payment. We have filled out one of their standard financial statements and are awaiting their reply regarding a solution to our problem. They will ring me with this in a couple of days and this is when I was going to suggest our idea to sell our house.


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