mortgage query?

lubo_moravcik

i'm currently paying over 5% interest rate, my fixed term is up later this year and i'd like to try get the rate down a bit. thing is the house is in negative equity, possibly by €30-40,000. payments have never really been a problem, (though the bank are saying i'm €150 in arrears) i put money in every week to cover the cost and more. when my fixed term is up, would another bank be willing to take me on with the mortgage, or due to the fact there is negative equity would i have to stay with my current mortgage provider??

thank you

Ogham

No other lender will give you a mortgage that is more than the value of the house.

Toots

Unfortunately if you're in negative equity, you're stuck where you are, no other bank is going to take on the debt.

lubo_moravcik

thanks

lubo_moravcik

lubo_moravcik wrote: »

thanks

right, another query on this thing.

i owe, lets say 200,000 and it's worth in the region of 160,000. would the bank allow me to sell for this price, and then with the 40,000 i owe them could i go for another mortgage of 120,000. then in turn, i would owe them 160,000, or is this just plain crazy?

Toots

You can't have a mortgage on a property you don't own, and the bank won't issue a mortgage that's over the value of another property.