Give house back to bank

C

coalface

Guest
I know there are a lot of sad stories around here. I'm not looking for sympathy. Just a little advice.


  • Bought house in 2006 for 340K
  • 3 bed in Wicklow area (v small development)
  • Had 30K deposit saved (paid 310)
  • On tracker mortgage with ICS
  • Have overpaid in past so mortage now 258K ish
  • Repayments now approx 1100 per month
So here's our situation.
Myself and herself are keen to move to the UK.
I'm self employed. The Irish side of my business has
slowed down a lot. My UK clients however are a bit busier.
It makes sense to focus on that aspect of the work.

I don't know the current 'value' of our home but we
would like to speak to the bank about getting relieved
of the house and mortgage so we can move on with
our lives.

Do you think banks are amenable to this or are we wasting
time contacting them?
 
Sounds like there is €70k to €100k negative equity.

Can your rent the house? The interest element of the repayment on €260k at 3% is €8,000. So if you can rent it out for more than this you will be making a profit, although you may have to pay tax.

The capital element of the repayment will go towards reducing the outstanding mortgage and maybe you will have paid off the negative equity after 10 years or so.

But you should tell the bank that you are moving to England. You don't want to go bankrupt and you want to pay your debts. But if you pay off the proceeds, they will have one less loss making tracker. Will they accept the proceeds in full and final settlement?

Try it and see how you get on.
 
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