BOI not allowing sale due 20k shortfall on tracker

C

Clonback

Registered User
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A friend has agreed a sale on his apartment which has a BOI tracker.There is a 25k shortfall and the bank is refusing to allow sale.
BOI policy is to allow negative equity to be carried into a new mortgage within 6 months whilst retaining the tracker rate +1%
As he has not selected a new property they want to charge him 9% on the shortfall.
Appreciate any advice.
 
I assume they are just looking to change it to a personal loan until he has a property and then it will be added to his new mortgage.

Can they not just keep it at tracker +1 for 6 months though? Of course if he hasn't got property by then it would have to convert to personal loan and he would loose ability to carry in to new mortgage.

I guess he really needs to find a property himself asap
 
The sale is due to close next week to a cash buyer but BOI are not making any decision.
If the sale falls has he any case against the bank?
 
He has not decided yet on a particular house but has no other borrowings and a clear credit record.
 
Has he been approved in principal for a negative equity mortgage ? I'm imagining he would need this to keep it at tracker +1 for 6 months but to be honest he needs to look for a property or delay sale of his as 6 months will fly by and he would loose his tracker plus option for negative equity mortgage
 
Could he try the nuclear option of bankruptcy, with the alternative of paying something?
 
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