NE mortgages BOI and AIB - what are our chances

[cmg2011]

Hi All,

Looking for some advice, here is our situation.
- House in Kildare worth €200,000 - outstanding mortgage is €320,000 with halifax bank of scotland on a tracker ecb + 1.5% 25 years left.

- Husband work in Tipperary near his home place, good job, secure, he has worked there for the last 15 years, just got a 5% pay rise so does not want to leave. annual salary is €65,000

- There is a site at his home place thats ours if we want it. We could build a bungalow for around €150,000.

So my question is, what are our chances of getting a mortgage with either bank for €250,000 with the €150,000 to build house and €120,000 to pay off negative equity. We would have a deposit of €20,000. We save every week.
I rang halifax a few weeks back and they said there would be a possiblity of selling our existing house and just having a loan of the NE, but what bank would give us a new mortgage with a loan of €120,000??

Just looking at all our options, we could rent our house out and rent a house down there but we would like our own house more for our kids sake rather then ours.

Looking for genuine answers please, thanks for reading

 

[LDFerguson]

Sorry but I don't think this is a runner. I'm not aware of any lender that will give you €120,000 to pay off negative equity with another bank.

I think the viable options are to sell the house, accept the negative equity loan from Bank of Scotland and rent or let the house and rent.

 

[Brendan Burgess]

I rang halifax a few weeks back and they said there would be a possiblity of selling our existing house and just having a loan of the NE, but what bank would give us a new mortgage with a loan of €120,000??

You have a cheap tracker and probably interest only? You should rent this out as the rent is likely to well cover the interest payable.

You can use the profits and your savings to build up a fund to eventually pay off the negative equity. In the meantime, you can rent.

You could also approach Bank of Scotland and ask them to do a deal with you. If you sell your house, would they write off the negative equity in exhchange for the surrender of the cheap tracker. They will refuse but might offer you something.

we would like our own house more for our kids sake rather then ours.

If you take out a huge mortgage on a high standard variable rate, you will have a lot less money available to spend on your children.

Brendan

 

[cmg2011]

Thanks for the replies, our monthly payment is €1258 and if we rent we will lose our trs which would bring our monthly payment up to €1408, we would only get around €850-€800 rent so we would have to make up the shortfall. When i spoke to certus that time they said they are not doing any debt write downs and seeing as we are making our payments and have never missed one they not just going to give us over €100,000 off the mortgage. I rang BOI and she is getting somebody from to give me a call back this week, see what they have to say. Im not too hopeful to be honest but if i dont ask i will never know, having the house for the kids is more about giving them a 'Home' instead of living in someone elses home and then moving on in a few years.