CaptainCat
Registered User
- Messages
- 26
First of all, thank you so much for always being an amazing guide. I’ve silently read almost every post on the forum over the last few years but now I’m hoping to get a bit of guidance from you all.
We were hoping to move home this year and were obviously nervous about the Central Bank Proposals doubled with the fact we are in Negative Equity. I was hoping some of you may be able to advise us on the best way to approach our mortgage provider in the hopes of obtaining a negative equity trade up mortgage. The ne w LTI values concern us as we estimate we would need approval at 4 times LTI to afford the price of a new home and carry the negative equity over to a new mortgage.
We were looking at homes in the price region of €350,000 but with the new rule I believe that may be out of our grasp. All of our bills are always paid on time, we’ve never had any problem paying our mortgage or anything else (both ICB records are clean) and consider ourselves to be very comfortable.
We definitely don’t want to rent our house out. We have no intention of becoming landlords! J
Here are our details, I will add any further information you may need to get a clear idea of our situation:
SalarySelf (31 years old) - €40,208 permanent full time public sector
Salary Spouse (34 years old) - €47,250 permanent full time private sector
Marital status – Married with 1 child (1 year old)
Current Mortgage – €345,000
Value of property– approx €295,000
Interest rate– EBS 5.14% fixed (2 years left on fixed rate) 27 years left on term
Child Benefit - €135/month
Other loans – car loan €267.21 per month (27 months left – approx €7200 left to pay –I’m not sure of the rate but I’m reluctant to pay this off as we will need finance to move)
Credit Card barely used and always paid before bill comes in and no other loans
Childcare – Child is cared by family members while we work so no cost to us thankfully
Savings - €50000 (half of which is a lump sum received from a settlement) – currently saving €500/€600 a month for the last few years.
First Question:
Is the LTI for negative equity mortgages based on the cost of the new home minus the negative equity or the cost of the new home plus the negative equity?
Second Question:
Have EBS ever entertained the idea of waiving the fixed rate early redemption charge? Our policy states we “May” be required to pay this but I received confirmation from an EBS rep that if we transferred to a new fixed rate then the charge would be refundable. It would obviously be easier for this to be waived but I haven’t read anywhere that EBS have ever done this.
Third Question:
What is the best way to approach EBS to encourage them to support us with a negative equity mortgage? Because of our lifestyle (don’t drink, smoke, socialise etc etc) we know we will be able to afford the new mortgage but obviously underwriters have strict rules. Furthermore our LTV will significantly drop from 116% to hopefully less than 105% with a new home meaning less risk for the banks.
Thanks so much for any and all advice in advance.
We were hoping to move home this year and were obviously nervous about the Central Bank Proposals doubled with the fact we are in Negative Equity. I was hoping some of you may be able to advise us on the best way to approach our mortgage provider in the hopes of obtaining a negative equity trade up mortgage. The ne w LTI values concern us as we estimate we would need approval at 4 times LTI to afford the price of a new home and carry the negative equity over to a new mortgage.
We were looking at homes in the price region of €350,000 but with the new rule I believe that may be out of our grasp. All of our bills are always paid on time, we’ve never had any problem paying our mortgage or anything else (both ICB records are clean) and consider ourselves to be very comfortable.
We definitely don’t want to rent our house out. We have no intention of becoming landlords! J
Here are our details, I will add any further information you may need to get a clear idea of our situation:
SalarySelf (31 years old) - €40,208 permanent full time public sector
Salary Spouse (34 years old) - €47,250 permanent full time private sector
Marital status – Married with 1 child (1 year old)
Current Mortgage – €345,000
Value of property– approx €295,000
Interest rate– EBS 5.14% fixed (2 years left on fixed rate) 27 years left on term
Child Benefit - €135/month
Other loans – car loan €267.21 per month (27 months left – approx €7200 left to pay –I’m not sure of the rate but I’m reluctant to pay this off as we will need finance to move)
Credit Card barely used and always paid before bill comes in and no other loans
Childcare – Child is cared by family members while we work so no cost to us thankfully
Savings - €50000 (half of which is a lump sum received from a settlement) – currently saving €500/€600 a month for the last few years.
First Question:
Is the LTI for negative equity mortgages based on the cost of the new home minus the negative equity or the cost of the new home plus the negative equity?
Second Question:
Have EBS ever entertained the idea of waiving the fixed rate early redemption charge? Our policy states we “May” be required to pay this but I received confirmation from an EBS rep that if we transferred to a new fixed rate then the charge would be refundable. It would obviously be easier for this to be waived but I haven’t read anywhere that EBS have ever done this.
Third Question:
What is the best way to approach EBS to encourage them to support us with a negative equity mortgage? Because of our lifestyle (don’t drink, smoke, socialise etc etc) we know we will be able to afford the new mortgage but obviously underwriters have strict rules. Furthermore our LTV will significantly drop from 116% to hopefully less than 105% with a new home meaning less risk for the banks.
Thanks so much for any and all advice in advance.