Negative Equity & want to Trade up

S

scoll

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Myself & partner are living in own home and paying mortgage in usual fashion. Bought three years ago but would like to look into trading up in the next year or so due to family considerations. Problem of course is that we would have 40k or so difference between what we would get to sell current home and what mortgage currently is.

My question is does anyone have any experience of this and whether bank would give us a mortgage for a new home based on its value and allocate the 40k to this? We would be able to pay the mortgage but are worried that we would not get a normal 90% mortgage and would have to come up with 40/50k ourselves which we wouldnt be able to do.

Any advice would be welcomed and thanks in advance.
 
Some of the banks do negative equity mortgages.

Do you have a tracker? If so, you are probably better staying where you are as long as possible. Or renting out your old house and renting a new home.
 
Thanks Brendan, no we dont have a tracker unfortunately, just standard variable.
 
The only potential to do this is with your existing mortgage holder. Give them a call to see if they consider negative equity mortgages. If they do, it will only be on the basis of you meeting all of the required criteria comfortably, including stressing the loan repayments at a projected interest rate of 6%.
 
EBS do as far as I know

Hi, I am with EBS Naas and my broker mentioned that they have a new product that works for people in your circumstances. I don't know what the T&C's/Criteria etc. are though. Do let us know what you end up doing....
 
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