Danske and Nationwide negative equity

M

MrsD

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Hi folks

Has anyone heard anymore information about the possibility that the main irish lenders may be required to take on Dankse or Nationwide negative equity mortgages?
This possibility was announced by Noonsn at the same time the reduction of the SVR's.

I've approached PTSB and ulster bank but they have saved that haven't heard anything as yet.

Would make sure a difference to be able to switch as it could open the possibility of a negative equity mortgage for us.

Thanks
 
It would be highly unusual for any bank to take on negative equity mortgages from another institution. In reality, the negative equity portion is essentially unsecured debt which would necessitate a risk premium in the form.of a higher rate than a typical mortgage interest rate on the unsecured portion; unsecured debt can often command rates as high as 10%. It may be an attractive proposition from a political piint of view, but is unlikely to be considered commercially viable from the perspective of an existing Irish lender.
 
Apparently AIB has said that they are looking into it. But I can't see how they could possibly come up with a product unless it was restricted to something like two times earnings.

Brendan
 
Thanks Brendan, I was naively hopeful when I read a few articles in relation to Noonans meeting with the bank and that it referenced that Danske and Nationwide negative equity mortgages were to be open to being able to avail of switching mortgages to get a better SVR. I guess we shall just have to wait and see what happens over the next few months
 
No it's a dankse on 4.5% mortgage value 177k property value approx 145k with perfect payment record. We are a couple in are early 30's total income approx 80k
 
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