negative equity mortgage

D

darkbeatz

Registered User
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Hi All,

Has anyone got any experience with getting a negative equity mortgage? We are hopefully about to sale agree our house with 30k negative equity. We probably are going to rent for a year or so though so we dont want a morgage straight away. Is this something that could be done? Will be talking to the bank tomorrow but wanted to see what other peoples experience or advise would be first!

Thanks
 
I think you would be better off paying back the 30K as soon as possible and saving a large deposit before buying again.
 
Hi Bronte

we are considering that as a Plan B - we have nearly 40k in savings. If we were to clear the balance saving that again will take another few years and I am 36 years of age....
 
And lucky you to be able to sell the house and also deal with the NE. You can also now choose where to live and if you don't like it you can easily move. Plus no hassle of being an owner.
 
@Bronte - I am curious that you would consider anyone in negative equity lucky?

@darkbeatz - We traded up this year, changed lender, and got an amount of NE similar to yours turned into a loan. It was the best move we ever made!
 
To sell in negative equity you have two choices:

1. Look for a buyer and when you get the offer ask your lender if they will take the offer price and convert the remainder to an unsecured personal loan.

2. Look for a buyer and when you get the offer use your savings to cover the remainder.

Option 2 is basically the “wipe out your savings” option.

Option 1 will play out like this:

First the lender will ask you to fill out a standard financial statement, this will have to include your savings, spending, etc.

Then you send that to the lender who will consider... since you have no need for the savings at this point in time they will say: “you have sufficient savings to cover the shortfall, use those, goodbye!”
 
s/build/buy/ i presume.

in which case, yep that would be the case... though they may ask to see evidence of the intent to buy... they may even want to know that the property you intend to buy is in ireland (to ensure you are not a flight risk)
 
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