Turned down for Mtg in Oct 2013, any point applying again

Hi, im wondering if somebody can give me an idea or put me out of my misery!!

I applied for a mtg in Oct with AIB & BOI (PTSB, KBC & UB didnt want to know!)

Scenario:
Salary 38k + 8k gtd bonus
Savings: 35k with chance of gift of 10k if needed
Saving 400pm with CU over past 12 months
Prize bonds 25pm (total 750)
No dependants

Outgoings:
Rent 400 per month
Mtg 430pm (2 bed apt rented out @ 360pm)
Mtg o/s 129k with 37yrs remaining current value approx 60k
Credit card 500, O/d 500 (both facilities held but never near the balance)

I was told that i could apply for 140k with both AIB & BOI but both came back to me stating that it was a full decline on the basis of the negative equity on the apt & to try again in 6 mths.

Im wondering what are the chances that the banks policy would have changed & if there is any point in continuing to save everything i have to bulk up my savings aswell as regular savings as like everything else there are a million other things i could spend the money on!!

A crystal ball would be great but ill leave it in the capable hands of the forum members to give your opinion.

Thanks

You seem to have a cheap tracker at around 2% interest.

Who is this mortgage with?

Would they do a deal with you something along the following lines

Sell the apartment which will leave you with a €70k shortfall.
Pay €35k off the shortfall to bring it down to €35k.
Add that to a new SVR mortgage.

The lender might go for this if it's a live lender.

If it's a dead lender like BoSI or Danske Bank, you should wait and hope that they might do a deal for the early repayment.

There is no harm in continuing to rent as you retain an interest in the property market with your apartment.

Don't forget that your apartment is a profiable investment in that the rent of €5,000 a year exceeds the interest cost of €2,000 a year. You are knocking €3,000 a year off the capital. It might not seem a lot, but the €70k negative equity will look much smaller after a few years.