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Quick one....mortgage application with negative equity

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  • 13-08-2013 1:32pm
    #1
    Robertr
    Registered Users Posts: 729 ✭✭✭


    Does your negative equity impact your application for an additional mortage? So is the second application based on your ability to pay or will they (current or new bank) just look the other way if you already have one in negative equity? Thanks.


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    #2
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Majority of lenders are now offering Negative Equity Mortgages subject to certain conditions such no arrears on current mortgage, total borrowing not to exceed 175% of the value of the new property and of course the ability the repay new mortgage. Who have you existing mortgage with?


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    #3
    Robertr
    Registered Users Posts: 729 ✭✭✭Robertr


    Yeah, that's an option but I am on a very good tracker so would prefer to be paying the negative equity at my current rate then move to market rate if I was to carry to new mortgage. Also, I feel that my property has reached its bottom so don't mind looking at it as a fresh investment. The repayment capacity is not a problem.


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    #4
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    You can apply for a mortgage for a new property and retain the existing property and rent out and should be able to hold on to your tracker rate.

    Once you can prove repayment capacity for both mortgages there should be no problem.
    Trish 56


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