What are the available deals when I am in negative equity

karibou57

Registered User
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Hi all,
I am currently with Ulster Bank and coming soon out of my 5years fixed rate. Obviously my house is now well into Negative Equity but fortunately I was able to keep my repayments.
Anyone has been in this situation already and if yes what options are available from Ulster Bank or Elsewhere?
Thx
 
1) You won't be able to move anywhere else if you are in negative equity

2) Check your mortgage agreement with Ulster Bank. Did you have a tracker before you fixed? If so, you should go back onto a tracker.
 
Think of it from the other bank's point of view. They want you to have a 10% deposit, so that they will lend only 90% of the purchase price. This means that if they have to repossess and sell the house, that they will be able to recover their loan.

I understand that in the recent stress testing, the lenders had to all make provisions against loans which were in negative equity, even if there were no arrears.

It's very hard to get mortgages at the moment even when you have a deposit. It would be impossible if you have negative equity.
 
Can't find similar situation. But seems that the rates proposed would be higher than normal SVR
If this is confirmed at the end of the fixed period, I am really not getting the bank logic. Would it be in their interest to put you under more pressure when not necessary?
 
Your original loan offer should show what the rate will revert to after the fixed period is up, it will say standard variable or ECB plus something, if you have a copy have a read of it.
 
....or in our case the contract could just read 'a variable rate' and then the bank (PTSB) offer you the 'special' LTV rate because you are in negative equity of 5.9%!!!!! Unbelievable, money grabbing so and so's that they are :-(
 
The OP hasn;t mentioned wanting to sell the house, just asking for advice on what to do at the end of the current 5 year term.

I don't see how/why negative equity is relevant with respect to that advice.
 
According to my loan offer it seems to be ECB+1.15
I think am not doing too bad on this one. Any idea how long this rate will then be for ?
 
The OP hasn;t mentioned wanting to sell the house, just asking for advice on what to do at the end of the current 5 year term.

I don't see how/why negative equity is relevant with respect to that advice.

If he wants to move mortgage provider, he would be going to them and asking for a mortgage for (for example) 120% of the value of the house. He is unlikely to get that mortgage.
 
According to my loan offer it seems to be ECB+1.15
I think am not doing too bad on this one. Any idea how long this rate will then be for ?

It looks like you will revert to an ECB + 1.15% tracker at the end of the fixed rate. If so, this tracker rate will last for the life of the mortgage.

You will not do better elsewhere.
 
You are flying so! looks like you are going back to a tracker rate, this will last for duration of loan.
 
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