Trade-down mortgages on a smaller home.

Oscaresque

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http://www.independent.ie/business/...ed-to-explain-plans-on-mortgages-3151623.html

AIB told the Government last night it would offer:
- Trade-down mortgages, where some negative equity is taken on to a new mortgage on a smaller home.


You would be hard pushed to find a house smaller than mine so these new arrangements offered by AIB will not help my situation, or that of other people in small houses/apartments. As i am shortly to go on 6 months of unpaid maternity leave approaching my bank now makes no sense and we will need to wait until I am back earning, however do people think that AIB would offer these negative equity loans to people moving to larger houses but with smaller values to their current mortgage.
 
I think trade down means more of price and what is sustainable, going forward, rather than the exact size of the house. It makes sense for the bank to see you in a sustainable mortgaged property, rather than stuck in negative equity and availing of interest only payment periods.
Like you, we too are waiting for A.I.B to come out "aggressiveley with products to the property market" as promised last month. I phoned up A.I.B this morning and the lady who answered assured me they are on the way, and just awaiting approval from the central bank.
 
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