Huge interest

bewhiched · 18-02-2021 5:57am #1

Hi
I have a Mortgage with Start and it's 5.3% I'm paying €1350pm on it I'm in negative Equity at the minute plus owe on the mortgage is €220,000 love advice on what I can do? Believe I'm paying €400 over the odds on this RATE desperate...
Thank you

JTMan · 18-02-2021 7:19am

Are you certain that you are in negative equity?

How much is your place worth?

Mellor · 18-02-2021 7:35am

What type of mortgage is it. Fixed, varible etc.
Do the terms allow you to pay it off? If so why not just remortgage with a new lender?

bewhiched · 18-02-2021 7:50am

JTMan wrote: »

Are you certain that you are in negative equity?

How much is your place worth?

Hi Thanks for the reply.
Yeah think it's worth €210,000 plus was taking to an adviser and said I was on the old Bank terms meaning I'd need 90% to change instead of 80% ...
Must get it Valued killing me paying that much a Month..

bewhiched · 18-02-2021 7:51am

Mellor wrote: »

What type of mortgage is it. Fixed, varible etc.
Do the terms allow you to pay it off? If so why not just remortgage with a new lender?

Hi
It's a Variable and like that years.....
Don't think I can if I'm in NEGATIVE Equity desperate

Mellor · 18-02-2021 7:56am

bewhiched wrote: »

Hi
It's a Variable and like that years.....
Don't think I can if I'm in NEGATIVE Equity desperate

How much was the original mortgage and how much is outstanding?

starbaby2003 · 18-02-2021 7:57am

bewhiched wrote: »

Hi
It's a Variable and like that years.....
Don't think I can if I'm in NEGATIVE Equity desperate

Negative Equity shouldn’t matter as there were provisions made specifically for that. You will need to be borrowing within 3.5 times your income though.

Buddy Bubs · 18-02-2021 7:59am

I don't know your circumstances but is there a reason you went with that mortgage provider at that rate?
Those reasons may still be there meaning a traditional lender may not take on your mortgage. Those rates are very high. I was on 2.95 variable just fixed for 5 years at 2.25 it saves me 100 a month so even getting it down a bit for now will greatly help you.

Darc19 · 18-02-2021 8:27am

starbaby2003 wrote: »

Negative Equity shouldn’t matter as there were provisions made specifically for that. You will need to be borrowing within 3.5 times your income though.

Eh?

Op is with Start mortgages. They are a sub prime lender and charge higher rates due to higher risk.

Basically the op was probably refused a mortgage by main banks when they took out the mortgage.

No bank will take it unless it is under 90% LTV AND 3.5 times income AND good credit record for past few years.

But 5.3% is Starts standard rate.

ted1 · 18-02-2021 8:28am

Why did you sign up to a rate if 5.3%?

starbaby2003 · 18-02-2021 8:35am

Darc19 wrote: »

Eh?

Op is with Start mortgages. They are a sub prime lender and charge higher rates due to higher risk.

Basically the op was probably refused a mortgage by main banks when they took out the mortgage.

No bank will take it unless it is under 90% LTV AND 3.5 times income AND good credit record for past few years.

But 5.3% is Starts standard rate.

I am not sure which part ‘eh’ is referring to but most of not all the main banks allow you to transfer negative equity across.

BOI for example https://personalbanking.bankofireland.com/borrow/mortgages/mover/negative-equity/ you can get up to 175% of the value.

stayback · 18-02-2021 8:41am

OP go speak to a good mortgage broker. Get recommendations from friends, family, reviews online. Do this before you get a valuation. You might be surprised what they can do.

As for the bank of Ireland option mentioned that is for people trading up not switching big difference from a banks point of view.

Mellor · 18-02-2021 8:42am

starbaby2003 wrote: »

I am not sure which part ‘eh’ is referring to but most of not all the main banks allow you to transfer negative equity across.

BOI for example https://personalbanking.bankofireland.com/borrow/mortgages/mover/negative-equity/ you can get up to 175% of the value.

That’s 175% of the value of a new property. That wouldn’t apply to the OP who is looking to renegotiate on his existing property.

I can’t see anything in the regulations that suggest anything other than 90%LTV applies.

starbaby2003 · 18-02-2021 9:05am

Sorry for some reason I thought you were moving.

bewhiched · 18-02-2021 11:42am

Huge thanks guys
I'll take all your advise and look more into this.
Thank you

Toots · 18-02-2021 4:12pm

starbaby2003 wrote: »

I am not sure which part ‘eh’ is referring to but most of not all the main banks allow you to transfer negative equity across.

BOI for example https://personalbanking.bankofireland.com/borrow/mortgages/mover/negative-equity/ you can get up to 175% of the value.

That option is for existing BOI mortgage holders only.

FromADistance · 21-02-2021 5:38pm

bewhiched wrote: »

Hi
I have a Mortgage with Start and it's 5.3% I'm paying €1350pm on it I'm in negative Equity at the minute plus owe on the mortgage is €220,000 love advice on what I can do? Believe I'm paying €400 over the odds on this RATE desperate...
Thank you

Is there anyway you can overpay the mortgage for a few years? The CBI income multiple / LTV rules do not apply to switcher mortgages however I doubt any bank would consider a switch where a mortgage is currently in negative equity. And I would imagine the lending criteria for a switch, even where the CBI rules do not apply, would be onerous enough. Unfortunatly, my feeling is that you could be with Smart for another few years to be honest

Huge interest

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