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Advice needed 2nd Buyer

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  • 28-06-2016 2:39pm
    #1
    Cullen85
    Registered Users Posts: 2 ✭


    Hi

    As I am sure there is a lot of people in the same boat as myself & my husband. My husband bought an apartment over 10yrs ago at a young age and now the situation has changed we are married 2kids and living with parents, the apartment is up for sale and an offer has been made the crap thing is we are left with a bill of over 40k negative equity. Is there anyone that has been through this and come out the other side good because we want to get another mortgage but don't know how it will happen

    Thanks in advance


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    #2
    Askthe EA
    Registered Users Posts: 724 ✭✭✭Askthe EA


    Have you spoken to the original bank that loaned him the mortgage?


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    #3
    Cullen85
    Registered Users Posts: 2 ✭Cullen85


    Yes spoke to the bank they are looking into the case, the thing is we have 50k savings as well. Just wanted to see had anyone else been in this situation as its heartbreaking at times


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    #4
    Askthe EA
    Registered Users Posts: 724 ✭✭✭Askthe EA


    I can imagine it is. Goodluck with it, I'd imagine the bank with the history is your best bet!


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    #5
    Angel2016
    Closed Accounts Posts: 194 ✭✭Angel2016


    Can you not do a trade up mortgage / negative equity mortgage where you take the negative equity with you so if you were looking at buying a house that is priced at 250K you would have your deposit for that in the 50k savings leaving the mortgage loans at 210K but you also then take the 40K negative equity with you leaving you with repayments on 250K.
    Speak to the bank on this as I know people are doing this.


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    #6
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Rent out the apartment and buy a house, that's what we did. KBC took the rental income into account and there was so room to fudge on valuations of the apartment. E.g. we took some 'aspirational' adverts of DAFT in relation to valuations.


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    #7
    Askthe EA
    Registered Users Posts: 724 ✭✭✭Askthe EA


    MarkAnthony wrote: »
    Rent out the apartment and buy a house, that's what we did. KBC took the rental income into account and there was so room to fudge on valuations of the apartment. E.g. we took some 'aspirational' adverts of DAFT in relation to valuations.

    How long ago was that Mark? Nowadays, having a rental is damaging to your prospects as they factor in the need to possibly cover two mortgages.


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    #8
    elainep13
    Registered Users Posts: 14 ✭elainep13


    My sister and her husband got a mortgage with KBC late last year, they both have apartments in negative equity rented out. They did have a lot of savings.


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    #9
    Turkish1
    Registered Users Posts: 273 ✭✭Turkish1


    Angel2016 wrote: »
    Can you not do a trade up mortgage / negative equity mortgage where you take the negative equity with you so if you were looking at buying a house that is priced at 250K you would have your deposit for that in the 50k savings leaving the mortgage loans at 210K but you also then take the 40K negative equity with you leaving you with repayments on 250K.
    Speak to the bank on this as I know people are doing this.

    This is probably the most successful route. Banks allowing this for people in exactly your situation - proof of savings, repayment history but not in suitable accommodation etc... I think you will lose a tracker if you have one but I amust open to correction on this.

    Only alternative I can think is to sell and pay the negative equity off from savings and see if you could get an exemption from Central Bank rules - not as likely as getting a negative equity mortgage though.


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    #10
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Askthe EA wrote: »
    How long ago was that Mark? Nowadays, having a rental is damaging to your prospects as they factor in the need to possibly cover two mortgages.

    Last year, about 13-16 months ago. I think it varies between banks. That said it's very possible the situation has changed. IIRC they took into account 10 months a year with 2 month for voids.


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    #11
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    elainep13 wrote: »
    My sister and her husband got a mortgage with KBC late last year, they both have apartments in negative equity rented out. They did have a lot of savings.

    I should probably note we had quite reasonable savings also. Perhaps that changes things.


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    #12
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    MarkAnthony wrote: »
    I should probably note we had quite reasonable savings also. Perhaps that changes things.


    Whats reasonable savings ? To each man its different. I suspect they both have very good salaries also.


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    #13
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    handlemaster wrote: »
    Whats reasonable savings ? To each man its different. I suspect they both have very good salaries also.

    Salaries: Wife is a bit above average I'm well below and only working PT.

    I'm afraid I won't be giving exact figures on savings,


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