Hi Dublin Guy
Most banks do allow existing customers to trade up and bring their negative equity with them. Which bank are you with and what is the interest rate?
You will find the AIB/EBS terms here:
http://www.askaboutmoney.com/threads/summary-of-aib-ebs-haven-tracker-mover-product.187831/ The other lenders have roughly similar terms (It says tracker mover product, but the same criteria apply to non-tracker mortgages.)
1) Are the banks offering negative equity mortgages, as in, could i buy the house we are renting and transfer over the €100k and have a mortgage of €450k? Is this even an option?
You would need to use the €70k as a deposit to bring down the overall LTV
2) Would it be a better idea to keep hold of my original house and take out a second mortgage with my wife on the new house?
No. If you sell your house, you will have a Loan to Income of 3.2 times, which is steep enough. If you keep your house, you will have a very dangerous LTI.
3) Is option 2 even feasible based on the ballpark figures I have outlined below?
Probably not. I doubt any bank would lend to you while you have €100k negative equity.
4) Without knowing the intracicies of the new Central Bank requirements (20% deposit required), based on what I have outlined above, what would appear to be the best approach? How do the Central Bank requirements apply to negative equity mortgages?
If you trade up, you are exempt, as you are in negative equity.
5) Does anyone know what the banks are currently are offering for people looking to trade up but have a property in negative equity?
AIB's is set out above. Other banks have them on their website.