Negative Eq but have to move - opinions please

[Bronte]

Thanks to all for their insights and advice. It was interesting to hear all the differing opinions and it helped me formulate the appropriate plan of action for my situation.

It's always great to hear that advice on here has helped someone, especially when it's a happy ending as nowadays we have so many awful stories.

 

[confusedude]

Just thought I'd add a final postscript to this. I'm the OP from May 2011...

Glad to hear it worked out for you. I learned a lot from this thread as I am in a similar position with neg eq and savings. Thanks for sharing. Can I ask: did you ask the bank to write off some of the mortgage seeing as how you were giving up a tracker and they were saving money by "getting rid of you"?

First off, no - the bank did not offer to write off any of the mortgage as a sweetener to get me off my tracker.

I don't think I mentioned before but I did secure a meeting with a home loans manager in a local AIB branch. I spent a long time with her and outlined my situation (with a myriad of supporting documentation) and put the suggestion of a Negative Equity mortgage to her. Bearing in mind that this was in 2011 when such products weren't commonplace. She listened intently, vowed to get back to me and I never heard from her again!

Anyways, fast forward to Oct 2015. I am now living in a great house (with an additional 2 kids!) in an area that is close to family and employment. I rented a property in the area for several years before buying a property that suited my needs. I now have a greatly reduced mortgage - 50% less than original mortgage payment (albeit 50% less than when the original mortgage was at it's highest ie when the ECB rate was on the up). I am on a SVR now but am working hard on reducing my LTV to improve my lot.

Not sure if I made the right decision but all has worked out for me. I have friends who were in similar situations and took the option of renting out their former PPR - I don't envy them, there is a lot of work involved in being a landlord and the worry they have about being left high and dry by dodgy tenants is ever present. However I realise they might think my course of action is unenviable!

The moral of the story: life is short. If you are someone 'trapped' in negative equity, don't panic, you have options. Consider them all. Make your decision and get on with your life. Family, health and happiness are what is important.