How much negative equity are banks prepared to put into a personal loan?

[Alwyn]

I have just spent the past hour with an estate agent who came to value my home. He said the current market value was 70k. This is very depressing as there is currently 120k still to be paid on my mortgage.

To make matters worse he said that buyers would not offer 90k but would realistically offer anywhere between 40k to 80k.

If for example I am offered 80k I will take a personal loan for the remainder of the negative equity if the bank will allow this.

How much of a personal loan will a bank allow one customer to take?

 

[Bronte]

Can you afford to move to a new place and pay off your negative equity of 50K?

First step is to talk to your bank in writing. You need permission to sell. Don't ask for an ordinary personal loan. Ask that the negative equity portion be converted to a loan but at the mortgage rate of interest and term.

Meanwhile is it possible for you to over pay the mortgage now to get down the negative equity. Do you have any savings etc. Where are you going to live if you sell?

 

[Alwyn]

Hello Bronte thank you for your response. I am living in a tourist town where the properties have taken a real noise dive in price. I contacted my mortgage provider today and they said I should put my proposal to them in writing but it would take some time to get back to me as there was a back log of similar requests.

I would not have significant savings to clear the negative equity but I am in the process of taking on a second job to help with clearing the negative equity.

I hope to leave Ireland as soon as I can sell.