B
baxter2006
Guest
My husband and I bought an apartment 2 1/2 years ago. Like a lot of people we are now in negative equity. We are both employed and are able to make our mortgage repayments. We bought the apartment as a stepping stone onto the property ladder as we couldn't afford a house at the time. However, we would like to buy a house in the next year as we would like to start a family.
There is approx €350k left on our mortgage and the apartment is worth approx €200k (although that might be a bit optimistic!). We have €15k in savings.
Based on our salaries now, we would qualify for a mortgage of €550k. The house prices that we are looking at are €350k.
I know there are a lot of discussions on negative equity within the forums but I can't find any where there is such a large negative equity.
My question is: are there any situations that you are aware of where the bank will transfer the negative equity from one property to another? The risk is the same to the bank as, if we default, the loss on the mortgage will be the same (€350k mortgage on apt value of €200k = €150k loss versus €500k mortgage on house value of €350k = €150k loss). I understand that there are other costs to consider here also e.g. solicitors fees, but is my basic understanding correct?
Also, would it be best to put all our savings for the next year against our mortgage or go 50/50?
I know some of the advice to people in negative equity was to keep paying into their mortgage until they come out of negative equity but as ours is so large, it could take 15 years for this to happen. I don't expect the apartment value to increase significantly in the next few years.
I'd appreciate any advice anyone has.
There is approx €350k left on our mortgage and the apartment is worth approx €200k (although that might be a bit optimistic!). We have €15k in savings.
Based on our salaries now, we would qualify for a mortgage of €550k. The house prices that we are looking at are €350k.
I know there are a lot of discussions on negative equity within the forums but I can't find any where there is such a large negative equity.
My question is: are there any situations that you are aware of where the bank will transfer the negative equity from one property to another? The risk is the same to the bank as, if we default, the loss on the mortgage will be the same (€350k mortgage on apt value of €200k = €150k loss versus €500k mortgage on house value of €350k = €150k loss). I understand that there are other costs to consider here also e.g. solicitors fees, but is my basic understanding correct?
Also, would it be best to put all our savings for the next year against our mortgage or go 50/50?
I know some of the advice to people in negative equity was to keep paying into their mortgage until they come out of negative equity but as ours is so large, it could take 15 years for this to happen. I don't expect the apartment value to increase significantly in the next few years.
I'd appreciate any advice anyone has.