Taking negative equity to a cheaper property

J

jud51

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Does anybody have information about a proposal made some time ago for those in negative equity who wish to trade down to a cheaper property and transfer negative equity to new property.

I have a property worth aprox 130,000. Mortgage outstanding of 160,000. Wish to sell existing property and buy property for 110,000.

Is it possible to do this with existing mortgage provider. Am 60 and got a 15 year mortgage 5 years ago. Unlikely to get another mortgage at my age in current climate.

Have not missed any mortgage payments but want to reduce monthly payments.
 
Last edited:
I don't think it's completely clear that you won't be allowed to do it.

The Central Bank has not approved proposals for a product to allow people to trade up and bring their negative equity with them.

However, the bank might allow you to trade down.

If you have a cheap tracker, they would be enthusiastic about it, but then if you have a cheap tracker, you won't be reducing your repayments if you take out a variable rate mortgage.

Ask your bank and see what they say.

Brendan
 
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