PPR in positive equity; BTL in negative equity - transfer?

S

sapper

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Hi - I'm an "accidental" landlord (held on to my first house when buying my second in 2006) currently living in a small 3 bed terraced with my wife and 3 kids. We're with PTSB who have released some good-sounding products for people like me (negative equity mortgage and tracker portability).

My problem is that to raise the money to pay stamp duty and the 10% increased price (due to a bidding war) when buying my current house in 2006, I remortgaged my first house (making it a buy-to-let in the process).

My principle private residence is now back in positive equity (after losing EUR200k in value) but my buy-to-let is still in negative equity to the tune of EUR100k .

We now want a bigger house. If the 100k negative equity was on my home, I would be able to sell my BTL and get a new negative equity mortgage. But with the negative equity on the BTL, the bank wont look at me.

Do the banks do deals like this? Will they ever? Letting somebody sell a buy-to-let (on a tracker rate) and port the shortfall over to another mortgage?

It would seem to me a great way to get the tracker, interest only, buy-to-lets that the CBOI is worried about off their books....
 
Hi sapper

I think you would have to sell your current home and move back into your original home.

But you would need ptsb's Approval in Principle before you did that.

Or you could sell your home and move back into your original home. If ptsb refuses you the tracker porter product, then let your original home again, and rent a more suitable home for your family.

Brendan
 
Hi Brendan - really glad I posted as I never would have thought of that! My original house is 1 bed cottage in Dublin city but could be extended to 2 beds pretty easily..Another important point is that the mortage is a "Residential Investment Property" tracker

I'm not clear on the 2 options you suggest though - do you mean 1) Get PTSBs approval first, sell my home and move back into my buy-to-let; vs 2) Sell my home and move back into my buy-to-let, then seek PTSB's approval to sell it if its in negative equity?

Of course I'll have to talk to PTSB....But if I did sell my house and move back into my cottage, would PTSB be able to move me off the tracker, given I am changing the circumstances of the mortgage?
 
You have no right to move your tracker.
PTSB has no barrier to allowing you to move it. If they want to do so, they would be able to do so.

As you have a RIP mortgage on your original home, ptsb may simply refuse to allow it to move. If they do, there is very little you can do about it.

I think you need to be upfront with them.

Is your current home on a tracker? If so, then you should be allowed to transfer it to a new property.

If it's not a tracker, sell it and move back to your original house. If ptsb allows you to port it to a new house, happy days.

If they don't, rent it.

Your current home may be cross secured on your original home.
 
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