Tracker Mortgage Retention

[elcaro]

If this query is already addressed - please point me to the relevant thread.

I have a joint mortgage with a sibling for an owner occupier property that now has ~50% negative equity.

If I purchase a separate property with my spouse, is it possible to obtain a separate new mortgage and retain the existing joint tracker mortgage?

Thanks

 

[NOAH]

yes

noah

 

[elcaro]

Ok -thx.

So given that the balance on the joint mortgage is 350k - my share being 175k and assuming my sibling agrees to reside in this residence and pay half rent to me. Furthermore, the joint residence is now worth say 200k, so we both have 75k neg. eq.

If I then apply for a seperate mortgage with my spouse (with a joint income of 90k) will the bank take into account my outstanding mortgage debt of 175k and/or my neg. eq. of 75k or neither in deciding what my loan limit is?

E.g., Would we be entitled only to 4x90 - 175 = 185K?

Thx.

 

[aaa1]

Actually you might not be able to retain your original tracker. Most tracker contracts state they are for the PPR - primary principal residence. If it is no longer your PPR technically you have breached the contract. But the bank would have to be told that first...

And yes, the bank will take your existing debt and negative equity into account when assessing you for another mortgage.

 

[thos]

You need to look at stamp duty also - was this house your first time purchase? How long have you lived there?

 

[NorfBank]

E.g., Would we be entitled only to 4x90 - 175 = 185K?

Thx.

Unfortunately not, you are liable for the whole amount of the mortgage i.e €350,000. I cannot see a lender advancing you another mortgage based on the facts presented.