How would AIB view my trade down from a split mortgage?

I have a split mortgage with AIB / EBS. While I am delighted to get it and it's given us a lot of peace of mind and security, the repayments are still tough with little to no disposable income.


To get some kind of life back, I'd consider selling and moving outside Dublin (jobs are flexible from home) to a house with a smaller mortgage circa 100k. As we are self employed we mightn't qualify with a new mortgage application due to credit record etc. but are currently over a year on the rescheduled payment on 250K repayment and 130 warehoused without missing any payments. We are 100% committed to this.


My questions are:


If I sell would my 7/10 write down on the warehouse portion stand? My letter of offer doesn’t mention selling, just any lump sum payments made prior to year 5.


Would AIB give us the 100k for the new purchase even if we wouldn’t meet their mortgage criteria on the basis that we’re making payments currently on a higher amount? They reduce their exposure and our affordability improves.

In general this proposal appears to make sense from both your own and bank perspective. However, you won't get a satisfactory answer unless you approach the bank directly. You will need to make your proposal in detail rather than just a general query. Speak to your own bank first and ask them what they would require from you!

44brendan said:

In general this proposal appears to make sense from both your own and bank perspective. However, you won't get a satisfactory answer unless you approach the bank directly. You will need to make your proposal in detail rather than just a general query. Speak to your own bank first and ask them what they would require from you!

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Thanks Brendan. Do the banks disregard their own mortgage criteria including credit rating for practical reasons like in this case?

Banks will differ on how they approach this type of submission, but in general a trade down involving a reduction in exposure will not be subject to standard assessment criteria!

Thanks Brendan. I think we would meet the affordability but the credit rating is shot for the time being.