My current mortgage is in negative equity (Balance 220k / Property worth 180k)
We are hoping to move to a new home worth approx 280k.
We have a deposit saved of 75k. Salary is 85k p.a. (my wife does not work).
Based on the central bank rules we should qualify got a negative equity mortgage as (a) we have the 20% deposit for new property and (b) our total remaining borrowing would be less than 3.5 times salary.
However our current mortgage is with Danske who have left the market. Will any of the remaining banks consider us to a negative equity mortgage? Or will have to continue saving until I can cover the existing negative equity and pay 20% deposit for new property i.e save an extra 20k approx.
Hi Brendan, perhaps I phrased my post badly. My current mortgage is in negative equity but the final position would be exactly per you numbers above.
I do have a cheap tracker that I would hate to lose but we need to move to a bigger home. One option would be to keep and rent out my current property but that would put my total borrowings above the Central Bank limits.
I sacrificed my Danske 0.5% tracker to move house earlier this year. We're now paying 3.6% with KBC. It wasn't in NE. Sometimes I think it was a crazy financial move and then I look around the house & despite the extra cost I'm glad we did it.
The Danske tracker is valuable for sure, but shouldn't be a set of handcuffs for life.