poolfanabc
Registered User
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- 39
Hi,
I'm looking at trading up from present negative equity house to a larger house due to family commitments and wondering how best to approach the bank about getting a larger mortgage whilst remaining in negative equity.
I've a perfect mortgage history over past 5 years, steady permanent employment...
As BOI currently only offer a negative equity mortgage whereby I would lose my tracker rate so have to pay a variable/fixed rate on the new house principal+negative equity quantity total, I'm wondering if the following is feasible:
If I were to open communications with the bank that I wanted to sell the house and rent a property more suitable for my needs, to allow me to sell the house and then have the negative equity value as an unsecured personal loan.
I'm unsure how this would look from banks perspective as although they are reducing loan value on a loss making tracker mortgage, they then have an unsecured loan for e.g. ~€90000 negative equity value on a tracker interest rate.
If successful with above, it may then leave me free to go to any other bank and attain a mortgage (obviously disclosing the unsecured loan for negative equity on the previously clearer mortgage), and thus saving me paying a higher interest on this €90k.
Would anyone with a professional financial backround offer any advice on whether this is feasible and how would ICS mught view such an application to clear the initial mortgage and how I would fare on attaining the 2nd mortgage?
Cheers!!
I'm looking at trading up from present negative equity house to a larger house due to family commitments and wondering how best to approach the bank about getting a larger mortgage whilst remaining in negative equity.
I've a perfect mortgage history over past 5 years, steady permanent employment...
As BOI currently only offer a negative equity mortgage whereby I would lose my tracker rate so have to pay a variable/fixed rate on the new house principal+negative equity quantity total, I'm wondering if the following is feasible:
If I were to open communications with the bank that I wanted to sell the house and rent a property more suitable for my needs, to allow me to sell the house and then have the negative equity value as an unsecured personal loan.
I'm unsure how this would look from banks perspective as although they are reducing loan value on a loss making tracker mortgage, they then have an unsecured loan for e.g. ~€90000 negative equity value on a tracker interest rate.
If successful with above, it may then leave me free to go to any other bank and attain a mortgage (obviously disclosing the unsecured loan for negative equity on the previously clearer mortgage), and thus saving me paying a higher interest on this €90k.
Would anyone with a professional financial backround offer any advice on whether this is feasible and how would ICS mught view such an application to clear the initial mortgage and how I would fare on attaining the 2nd mortgage?
Cheers!!