coming off fixed rate in negative equity?

[cluckyduck]

We've been on a fixed rate for 3 years which is due to expire shortly. We unfortunately bought our house at the height of the boom and its now worth at least €100k less than what we paid for it. The rate we're fixed on is 4.79%. Would we be able to secure a lower rate now? Or will there be some penalty because our property isn't worth what we paid for it? (our mortgage was for €380K and the house is now worth around €325K)

 

[NorfBank]

cluckyduck,

What rate do you revert to when your fixed rate ends?
This will be on your loan offer, if you do not have this then check with your lender or solicitor.
More than likely it will be the standard variable rate but you could be lucky and get a tracker.

There will not be a penalty due because you are in negative equity but you will not be able to move lenders.


www.moneybackmortgages.ie

 

[Bronte]

It is more than likely depending on which bank you are with that the variable or tracker rate (depending on your loan agreement) will be lower than the fixed rate you have quoted.

You need to address the negative equity. If your repayments are lower than try and keep up the same repayments (against the capital) in order to reduce your negative equity.