Key Post Summary of negative equity and tracker mover options

Brendan Burgess

Brendan Burgess

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The following lenders offer customers negative equity transfer mortgages.

If you have a mortgage with Danske, BoSI, or any lender other than those in the table below, then you will not be able to avail of a transfer mortgage. Other lenders will not give negative equity mortgages or trackers to non-customers.

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The Ulster Bank criteria seem very loose."You can transfer your negative equity to your new home and you don't need a deposit as long as you can meet our affordability criteria." It seems that you could go from having negative equity of €50k to having negative equity of €100k if you had the loan to income. All the other lenders require at least a 10% deposit, which effectively mean that you reduce your absolute negative equity.

If you are currently paying ECB + 0.5% with AIB, you will pay ECB +1.5% after the move.
With Ulster Bank, it doesn't matter what tracker rate you are paying, you will pay ECB +2% after the move.



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It's very hard to construct a case which doesn't meet the 125% maximum LTV limit. You would have to have very high negative equity now, only 10% deposit and not be trading up by very much.
 

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Hi Brendan,

Do you think BOI will consider extending the term on their mover product ? I note from your table they are the lowest of the 5 lenders for the term on the new rate. I am in negative equity and on a tracker with them and am interested in moving but the 5 year term is still making me wait and see, and building up savings in the meantime.
 
Hi Brendan,

My NE mortgage is with dankse bank,we'd roughly have the 10% but they won't deal with any new mortgages obviously. Do you know of anyway we might avail of getting a new house with only having a 10% deposit. We looked into transferring but no other bank is interested in taking on a ne mortgage. We are not in arrears have only missed one payment but doubled the payment the following month and we are in NE to the tune of about 10k possibly less. Could we sell now,and then just prove to the next bank that we sold in NE? Saying that we wouldn't be able to save up our 10% again until next year after paying off the short fall.

Anyou advise is greatly appreciated
 
I have updated the first post as follows:

The following lenders offer customers negative equity transfer mortgages.

If you have a mortgage with Danske, BoSI, or any lender other than those in the table below, then you will not be able to avail of a transfer mortgage. Other lenders will not give negative equity mortgages or trackers to non-customers.
 
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