F
fuzz
Guest
I had an idea, that I was thinking of going to the bank with to get rid of my negative equity, but just to put things in perspective, my situation is as follows;
I'm a dub but I bought an apartment in Portlaoise in 2007 as its all I could afford at the time, and planned on trading up after a couple of years and moving closer to Dublin when I could afford to. But that all went pear-shaped and now I'm in negative equity and I'm stuck with the apartment.
I have about 180K left on my mortgage and the apartment is worth ~120K and falling. My idea is to go to the bank and ask them if they would write off the 60K negative equity in exchange for me giving up my 2.45% tracker rate and moving me to a 5.7% variable rate on the remaining 120K.
I know banks like to get customers off trackers and over the life of the mortgage (26 yrs left), the bank would make almost as much with me paying 5.7% on 120K as they would me paying 2.45% on 180K, but also bear in mind that the variable rate would rise more than the tracker, so they actually probably wouldn't make any less over the life of the mortgage.
I'm not trying to turn a profit here, all I'm trying to do is offload the negative equity so that I can either sell and be rid of it, or if I still can't sell it, at least it might be easier to get a mortgage with my partner to buy a family home in a couple of years and start a family.
Does this even have a wild snowball's chance in hell of sounding reasonable to the bank?
I'm a dub but I bought an apartment in Portlaoise in 2007 as its all I could afford at the time, and planned on trading up after a couple of years and moving closer to Dublin when I could afford to. But that all went pear-shaped and now I'm in negative equity and I'm stuck with the apartment.
I have about 180K left on my mortgage and the apartment is worth ~120K and falling. My idea is to go to the bank and ask them if they would write off the 60K negative equity in exchange for me giving up my 2.45% tracker rate and moving me to a 5.7% variable rate on the remaining 120K.
I know banks like to get customers off trackers and over the life of the mortgage (26 yrs left), the bank would make almost as much with me paying 5.7% on 120K as they would me paying 2.45% on 180K, but also bear in mind that the variable rate would rise more than the tracker, so they actually probably wouldn't make any less over the life of the mortgage.
I'm not trying to turn a profit here, all I'm trying to do is offload the negative equity so that I can either sell and be rid of it, or if I still can't sell it, at least it might be easier to get a mortgage with my partner to buy a family home in a couple of years and start a family.
Does this even have a wild snowball's chance in hell of sounding reasonable to the bank?
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