Negative Equity Loans

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nathan210705

Registered User
Messages
75
Folks,

Does anyone know what happened to the idea of negative equity loans? I've been researching online and all findings are from 2010 and nothing up to date.

Cheers
 
They exist but you have to go in and ask about them - they are still very much top secret at the moment! They will allow a LTV of 125% but they are very hard to get. I got refused one as my new proposed figures came in at LTV 135%. My current LTV is 165%!!!!! makes no sense as to why they could not do this for me given the figures.

Good luck getting one.
 

2 points occur here, the first being how you were getting from 165 to 135.

Maybe they thought you could do better if you dug deeper in the mattress

The other is that the current focus seems more on ability to service rather than being fixated on the LTV.

The LTV is largely irrelevant if the cash flow is not there to service the debt in a reasonable time.
 
Has anyone heard of negative equity loans from Dublin City Council?

I've an affordable home which I'm desperate to get out of. I've had potential buyers who were more than willing to buy, but, I'm 30K in negative equity and obviously couldn't accept any offers.

If they made an arrangement for me to sell and pay the 30k monthly over the course of the remaining mortgage I would gladly do so.
 

What you are seeking here is an unsecured long term loan from DCC.

They are not in that business, they may as well write it off which they are clearly not prepared to do.
 
TBH - I haven't really pushed them that far in terms of seeking to have the debt written off, mainly because I am currently in a position to service the mortage loan and secondly because it might hinder my chances of getting another mortgage.

The main reason for wanting to move (which I know many people do!) is that we're living in a 2-bed apartment with 2 kids, wife is severly depressed living where we are...

Back to the drawing board.
 
I have found a 4-bed hous for €200k... Estate agents values at €250k... Builder is trying to get rid...

Are you saying that the bank might let me carry negative equity onto a new gaff?
 
hastalavista said:
2 points occur here, the first being how you were getting from 165 to 135.
Click to expand...
Some possibilities:

1. trading up to a more valuable property where the negative equity will be a smaller % of the property value - e.g. mortgage/value moving from 250/150 (167%) to 400/300 (133%) - negative equity stays at 100 but the more valuable property makes the LTV smaller.

2. Using savings to pay off some of the NE as part of the move - e.g. as above mortgage/value of 250/150 (167%) but pay off 50 of the NE; buy another property for 150 but mortgage/value is now 200/150 (133%)
 
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