Hi guys,
I'm Looking for some advice as regards what to do with Negative Equity etc..
Long story short..
We Have a 3 bed-semi in Kildare Commuter belt - current value c. €145K
Current Mortgage outstanding on above €240K - negative equity €95K - term remaining on mortgage 22 years.
The Monthly mortgage repayment on the above at 4.59% APR is €1,468
Myself + Wife are self Employed (Both Directors) Combined salaries €100K gross.
No Loans, Credit Card kept In check.
Some arrears did accrue on the above mortgage during a bad patch and we had a interest only restructuring plan put in place for a period - however arrears are now cleared and the mortgage account is in credit to the tune of €5K.
We are currently renting out the above property and are renting ourselves in Dublin as it makes logistical sense and has us in proximity to family.
The monthly rental income received is €850 and we are covering the shortfall of €618 to meet the annuity.
We are currently paying €1,150 to rent in Dublin (touch wood), so that's €1760 in total between rent & our mortgage. In addition we are topping up the mortgage to the tune of €1,000 per month in order to reduce mortgage term and put a dent in the negative portion. So €2,760 pumped into accommodation black hole and we still have > €2K disposable after this.
Ideally we would like to get rid of the house in Kildare, taking the negative portion and trading up in Dublin (even though it would probably be a smaller house!). We are not cut out to be landlords and it's not exactly a profitable game based on the above!
However... after approaching our Bank we have been told that they will not entertain a trade-up on the basis that there has been a restructuring plan in place within the last 2 years?! On paper we could well afford to cover a new mortgage that absorbs the negative and to the bank it represents what we think is a no-brainer opportunity for them to get new & better business, but they are hard-line on this. I guess it's just their Risk matrix being applied?? I'm not sure if I can name the Bank here, but lets just say they come from a country famous for Waffles, Beer and fries
We do not see ourselves moving back to the house in Kildare as we are very settled now (Kids/School etc) and all we really want to do is invest in our own home in Dublin and not have to deal with the stress of being a reluctant landlord and also the stress of increasing rents in Dublin and the insecurity of renting in general.
So what to do.....any suggestions greatly appreciated!
N
I'm Looking for some advice as regards what to do with Negative Equity etc..
Long story short..
We Have a 3 bed-semi in Kildare Commuter belt - current value c. €145K
Current Mortgage outstanding on above €240K - negative equity €95K - term remaining on mortgage 22 years.
The Monthly mortgage repayment on the above at 4.59% APR is €1,468
Myself + Wife are self Employed (Both Directors) Combined salaries €100K gross.
No Loans, Credit Card kept In check.
Some arrears did accrue on the above mortgage during a bad patch and we had a interest only restructuring plan put in place for a period - however arrears are now cleared and the mortgage account is in credit to the tune of €5K.
We are currently renting out the above property and are renting ourselves in Dublin as it makes logistical sense and has us in proximity to family.
The monthly rental income received is €850 and we are covering the shortfall of €618 to meet the annuity.
We are currently paying €1,150 to rent in Dublin (touch wood), so that's €1760 in total between rent & our mortgage. In addition we are topping up the mortgage to the tune of €1,000 per month in order to reduce mortgage term and put a dent in the negative portion. So €2,760 pumped into accommodation black hole and we still have > €2K disposable after this.
Ideally we would like to get rid of the house in Kildare, taking the negative portion and trading up in Dublin (even though it would probably be a smaller house!). We are not cut out to be landlords and it's not exactly a profitable game based on the above!
However... after approaching our Bank we have been told that they will not entertain a trade-up on the basis that there has been a restructuring plan in place within the last 2 years?! On paper we could well afford to cover a new mortgage that absorbs the negative and to the bank it represents what we think is a no-brainer opportunity for them to get new & better business, but they are hard-line on this. I guess it's just their Risk matrix being applied?? I'm not sure if I can name the Bank here, but lets just say they come from a country famous for Waffles, Beer and fries
We do not see ourselves moving back to the house in Kildare as we are very settled now (Kids/School etc) and all we really want to do is invest in our own home in Dublin and not have to deal with the stress of being a reluctant landlord and also the stress of increasing rents in Dublin and the insecurity of renting in general.
So what to do.....any suggestions greatly appreciated!
N