I currently have a home worth approx 200k. Mortgage is 300k on a tracker of 2.25% above ecb. Currently been paying interest only for last 6 months as struggling to afford it due to increased costs,salary cuts etc, have been informed by ptsb that they will only offer another 6 months of interest only.
I want to move closer to work/amenities as fuel costs,m50 bills are as much as interest only on mortgage. Moving closer to work combined with reduction of childcare costs would just enable me to pay the full amount of mortgage as it stands.
Ptsb said Options are to move and as I am in 100k negative equity that the maximum house purchase would be approx 170-180k. But I would lose the tracker rate on the whole loan, and go onto svr of 4.35% . So my incentive to move now is zilch as I will end up paying more for the loan than I'm paying now.
I asked if I sold property what would happen with the negative equity? Reply was the negative equity would be expected to be paid back on the tracker rate and over the same term.
So, the option to sell and pay an Unsecured loan back at a tracker rate is more attractive than buying a different property. Now to me,that is wrong. If they want people to move, they have to allow the same rate to be applied as the incentive is gone.
Ptsb expressed all decisions are on case by case basis. BUT that is not true as they will not budge on the tracker issue so it is not a case by case basis but a strict PTSB POLICY.
I am not sure if these policies are well known but with all the rubbish in the press over the last few days from Ptsb stating more money being available, that is misleading the public.
Surely to kickstart the buying and selling of properties then this has to change as there is no incentive for me to move as the savings I will make with less bills will be cancelled out by the increase of mortgage payments.
Now thats what i call CATCH 22
I want to move closer to work/amenities as fuel costs,m50 bills are as much as interest only on mortgage. Moving closer to work combined with reduction of childcare costs would just enable me to pay the full amount of mortgage as it stands.
Ptsb said Options are to move and as I am in 100k negative equity that the maximum house purchase would be approx 170-180k. But I would lose the tracker rate on the whole loan, and go onto svr of 4.35% . So my incentive to move now is zilch as I will end up paying more for the loan than I'm paying now.
I asked if I sold property what would happen with the negative equity? Reply was the negative equity would be expected to be paid back on the tracker rate and over the same term.
So, the option to sell and pay an Unsecured loan back at a tracker rate is more attractive than buying a different property. Now to me,that is wrong. If they want people to move, they have to allow the same rate to be applied as the incentive is gone.
Ptsb expressed all decisions are on case by case basis. BUT that is not true as they will not budge on the tracker issue so it is not a case by case basis but a strict PTSB POLICY.
I am not sure if these policies are well known but with all the rubbish in the press over the last few days from Ptsb stating more money being available, that is misleading the public.
Surely to kickstart the buying and selling of properties then this has to change as there is no incentive for me to move as the savings I will make with less bills will be cancelled out by the increase of mortgage payments.
Now thats what i call CATCH 22