ulster bank mover mortgage with NE

km79

just a quick query as its only something we have started thinking about as we didn't even know it was possible !
Have a mortgage on a house in negative equity ( at a guess I'd say around 50k) with ulster bank.
After looking online ive spotted that Ulster Bank have a new mortgage product allowing us to bring the NE with us and a LTV on new house of 175% .
so my question is would we need to also have the deposit for the new house ? or would this be incorporated in the new mortgage given the higher LTV as the new house would be similar of lower price than the one we sell?

The_Chap

km79 wrote: »

just a quick query as its only something we have started thinking about as we didn't even know it was possible !
Have a mortgage on a house in negative equity ( at a guess I'd say around 50k) with ulster bank.
After looking online ive spotted that Ulster Bank have a new mortgage product allowing us to bring the NE with us and a LTV on new house of 175% .
so my question is would we need to also have the deposit for the new house ? or would this be incorporated in the new mortgage given the higher LTV as the new house would be similar of lower price than the one we sell?

We are going through this process currently.

Bottom line with our bank (AIB) is you still need 20% deposit for the purchase of the new house, regardless of the negative equity amount.

km79

The_Chap wrote: »

We are going through this process currently.

Bottom line with our bank (AIB) is you still need 20% deposit for the purchase of the new house, regardless of the negative equity amount.

I'm actually on the way into ulster bank now and will update

km79

Called into local branch that our mortgage is with
However only one bank in each region deals with these types of porting mortgages so I have to wait till tomorrow when they call me
However from reading the fine print we both think a deposit is not needed as It seems to allow a ltv of 100% and over on the new property in the t and cs
Whereas with ahi it states a LTV of 90% for FTB and 80% for everyone else
Anyway I'll know tomorrow
If we need a deposit there is no more thinking about it
If we don't there is plenty of food for thought!

km79

just had it confirmed that as long as house is in NE we do NOT need a deposit!
as soon at leaves NE we are under the next regulation
so we don't have much time to decide......

The_Chap

is the new house higher or lower value than the one you are in?

km79

The_Chap wrote: »

is the new house higher or lower value than the one you are in?

this is all theoretical as we have not decided but it has to be equal to or lower than the existing mortgage balance

The_Chap

that makes sense now - we are looking at moving to higher value and taking about €20k NE with us

Bank is insisting on 20% deposit for new house

our figures are apartment value 170k - mortgage at 190k, looking to buy house at 240 meaning we need 48k deposit.

overall we will have mortgage of 212 vs 240 house = 88% LTV

better than our current position, but annoying they still dictate the 20% deposit - all the CBI rules state NE mortgages are exempt from the 80% rule, but that's not the case in reality! all we were looking for was an extra 10k to not be such a stretch, but hey ho - new kitchen on backburner for a couple of years!

bungaro79

The_Chap wrote: »

that makes sense now - we are looking at moving to higher value and taking about €20k NE with us

Bank is insisting on 20% deposit for new house

our figures are apartment value 170k - mortgage at 190k, looking to buy house at 240 meaning we need 48k deposit.

overall we will have mortgage of 212 vs 240 house = 88% LTV

better than our current position, but annoying they still dictate the 20% deposit - all the CBI rules state NE mortgages are exempt from the 80% rule, but that's not the case in reality! all we were looking for was an extra 10k to not be such a stretch, but hey ho - new kitchen on backburner for a couple of years!

chap i'm kinda in the same situation as yourself. have a mortgage with aib of about 250k on a house worth maybe 220k. we are looking to move but the 20% is what is killing us but are you saying that this doesn't apply since we are in negative equity?? if we were to look into buying a place for say 300k what would this mean we would need?? you seem to have a good idea of these new rules!

The_Chap

bungaro79 wrote: »

chap i'm kinda in the same situation as yourself. have a mortgage with aib of about 250k on a house worth maybe 220k. we are looking to move but the 20% is what is killing us but are you saying that this doesn't apply since we are in negative equity?? if we were to look into buying a place for say 300k what would this mean we would need?? you seem to have a good idea of these new rules!

Bungaro I wouldn't say a good idea, moreso have quizzed AIB every step of the way to get clarification of how they have interpreted the rules, they took 8 weeks just to decide who's desk our application should be dealt with - the cynic in me says they were stalling for time while they figured out a policy.

Anyway, unfortunately the 20% rule does indeed still apply if you are trading up with negative equity, so you would be looking at needing 60k minimum

bungaro79

thanks chap, this 20% is flipping killing us

joe2687

Just to update this thread incase anyone else lands on it..

UB are offering 200% LTV for Negative Equity Mortgages. if (like me) your on a favourable tracker, you WILL lose it. They're currently offering a 10 year fixed tracker @ ECB+2.5% (std. variable after that).

If you house returns to par, you need a deposit.

elana101

Do you need a deposit if youre trading up and availing of the NE tracker mover mortgage???

joe2687

elana101 wrote: »

Do you need a deposit if youre trading up and availing of the NE tracker mover mortgage???

no - your existing home acts as this, with the 200% LTV caveat.

Gilchey

Hi all - new to boards, but need some advice re NE mortgage. We are currently living with parents trying to save as much as possible (with two little kids). We have approx 60/70k neg eq on an apartment in Tyrrelstown.
I'm interested to know if the Ulster Bank NE mortgage coupled with our savings will get us into a family home sooner rather than later.
Is it 100% that if you are looking for a new mortgage of more than your existing mortgage, you need the 20% deposit?
We are looking at houses for 300k. By summer should have about 35k saved. But won't have 60k saved until about next Mar/Apr and my concern is by then the market will have pushed what you can now get for 300k into a higher bracket, and the 20% is a constantly moving goalpost. For every 10k the market price goes up, we need 2k! That's insane!
We have never missed a payment, and have been in NE for years. I feel it's about time the NE worked for us, instead of against us!

Would love to hear more from anyone who has gone through this successfully . . .

The_Chap

Gilchey wrote: »

Hi all - new to boards, but need some advice re NE mortgage. We are currently living with parents trying to save as much as possible (with two little kids). We have approx 60/70k neg eq on an apartment in Tyrrelstown.
I'm interested to know if the Ulster Bank NE mortgage coupled with our savings will get us into a family home sooner rather than later.
Is it 100% that if you are looking for a new mortgage of more than your existing mortgage, you need the 20% deposit?
We are looking at houses for 300k. By summer should have about 35k saved. But won't have 60k saved until about next Mar/Apr and my concern is by then the market will have pushed what you can now get for 300k into a higher bracket, and the 20% is a constantly moving goalpost. For every 10k the market price goes up, we need 2k! That's insane!
We have never missed a payment, and have been in NE for years. I feel it's about time the NE worked for us, instead of against us!

Would love to hear more from anyone who has gone through this successfully . . .

We've gone through it and out the other end over a year now, we needed 20% with either AIB or PTSB, got so fed up with the AIB NE mortgage promises that never came to reality, I used funds to clear the NE first then went with a different bank

Gilchey

Thanks for the reply. So you used savings to clear the NE, and then also had savings for 20% deposit on a new property? Or did savings just clear some of the NE, and you didn't then need a deposit?

The_Chap

Gilchey wrote: »

Thanks for the reply. So you used savings to clear the NE, and then also had savings for 20% deposit on a new property? Or did savings just clear some of the NE, and you didn't then need a deposit?

We used some savings to clear the NE and managed to scrape the 20% for the new property also

Luckily the time it took the banks to respond meant our NE had reduced down to €12k so it was within our reach

Zebrano

Really interested in this thread as we are hoping to apply for a NE mortgage later in the year. Would love to learn from anyone elses experience.

TheChap, that's a good news story that it all worked out for you.

Other than the deposit amount issues etc, my other concern is the timing of the transactions. From what I understand, you must complete the sale of your current NE house before buying your new house. How does (and is it possible) this happen? I'm doubtful the sale and purchase can close on the same day?

What if you close and your house on a certain date, and your sale agreed on another property and that falls through/is delayed? Then you are homeless??!!

If this happened to us, we would have nowhere to go as renting would be difficult as we have pets....

phatAlbert

Hi Gilchey,

We are almost in the exact same situation as you guys. We've been saving by living at home with the parents for the last year and have two young children. We hope to apply for a trade-up NE mortgage with UB in the next couple of months.
My basic understanding of the process is that you don't need a deposit with UB and you can borrow 100% of the new purchase as long as you don't exceed 200% Loan-to-Value (LTV) on the new house. The usual Loan-to-Income rules also apply i.e. 3.5 times your combined income (exceptions to this are at the discretion of the bank).
We're saving money to bridge the gap between what the bank will hopefully lend us and the price of the new house. Plus savings for solicitor's fees, stamp duty and moving-in essentials.

Hope this helps in some way

Gilchey

The timings aspect seems very risky to me too. A branch manager at Ulster Bank said the sale of the NE property and the purchase of the new property would have to all occur within a week, which is reasonable for those carrying equity or breaking even- but for those in NE, I'm not sure if that's too big a risk.
If you can't 'port' the NE amount onto a new mortgage (e.g. if the sale of new property fell through), does it exist as a personal loan?

The_Chap

Gilchey wrote: »

The timings aspect seems very risky to me too. A branch manager at Ulster Bank said the sale of the NE property and the purchase of the new property would have to all occur within a week, which is reasonable for those carrying equity or breaking even- but for those in NE, I'm not sure if that's too big a risk.
If you can't 'port' the NE amount onto a new mortgage (e.g. if the sale of new property fell through), does it exist as a personal loan?

The paperwork we got from AIB meant that if the sale of new property fell through then the NE amount was payable over 3 years

elana101

Do you need to pay booking deposit yourself for a house or will the bank cover this in NE trade up where ulster bank do not require deposit ?

Thanks