Key Post Diary of a successful negative equity trade up with Bank of Ireland

Negative Equity Trade Up Success

I hope this helps other people. After a long eight months of stress and more stress we have finally drawn down on our NE mortgage.
We put apt up for sale in May after much consultation with the BOI previous to this. We received close to asking price immediately, however due to a number of issue we only closed the sale in Oct. As we were not buying and selling at same time the bank gave us 12 weeks from close of apt sale to purchase new house. We had put an offer on a house in June but due to land registry issues it only got sorted last week. In order to get the 12 weeks timeframe from the bank we had to lodge €15k as collateral against the NE in case we didn't go ahead with the purchase. If this had been the case it would have been reabsorbed back into the NE and we would have been left with the balance to pay back as a personal loan. My figures are as follows

Apt sold for €121,500
Purchased house for €200k
Had €20k deposit
NE shortfall €45k.

I hope this helps anyone going through what we went through. It was without doubt the most stressful exp Iv ever gone through, we were a relatively new case for the bank and they had wanted us to buy and sell simultaneously so a lot of negotiations was had to give us the additional time to complete the house purchase.
I have to say I had a really good exp with my bank branch they could not have done more for us.
Please feel free to question any information I may have omitted.
 
Laura

That's a great end to a long and stressful story. I have merged all three of your threads together as it will be of huge help to anyone going through the process. It will encourage them to persevere.

Are these the correct numbers for the original mortgage?

original mortgage| €166k
sale price of old home|€121k
Negative equity| €45k
Are these the numbers for the new mortgage?

Purchase price of new house| €200k
+ Negative equity| €45k
- deposit|€20k
Amount of new mortgage| €225k
Negative equity|€25k
Is the following timeline correct?

March| Decided to aplly for a trade up mortgage
May | After many meetings, Bank of Ireland agreed a trade up mortgage
June | Put apartment on market and received acceptable offer immediately
August| Bank of Ireland approval extended, due to delays in buying and selling
September| BoI allowed sale subject to deposit towards Negative Equity
October| closed sale of former home
December |closed purchase of new home
 
Laura

Can you clarify that you were on a fixed rate or a SVR and not on a tracker?

I suspect that the Bank would not have allowed you keep the tracker if you had one.

Brendan
 
All figures above are accurate Brendan, and yes we were on a fixed rate and have fixed rate on new mortgage also.
Many thanks, it was a very drawn out process with many hurdles at times we didn't think could be overcome but we kept persevering and thankfully it paid off!
Thanks for all the advice Brendan and everyone who contributed.
 
You must log in or register to reply here.
Back
Top