Coming off Fixed Rate Mortgage - Negative Equity

D

dire

Guest
Hello there,

I was wondering if someone should shed some light for me.

I am coming off a 3 year fixed mortgage with BOI next month, current rate is 5.15%.

I don't think I am going to switch providers as I am in negative equity so my LTV isn't in the 92% range that most of them ask for.

I also heard that a lot of the banks will add on higher rates for people in Negative Equity to try and accumulate their loss, however AIB and BOI cannot do this as part of the bailout agreement.

My question am I right in assuming this? Has anyone been in the same boat? I tried looking at previous threads but could not get anything concrete out of them.

I am waiting for a confirmation letter form the bank but thought I would see if anyone else has any opinions.

Thanks,
 
Should you not be moving to their standard variable rate?
I also heard that a lot of the banks will add on higher rates for people in Negative Equity to try and accumulate their loss, however AIB and BOI cannot do this as part of the bailout agreement.
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I am not sure how banks can do this, while the know the value of the mortgage they cannot assume a house is in neg equity...
 
From memory i think main banks have 2/3 variable rates depending on your LTV. I suppose the question is do they seek some confirmation re the market value and as original poster asked what happens when you are in negative equity. I have heard that some of the foreign banks have hiked up the variable rate knowing that the borrower cannot shop elsewhere while in negative equity
 
Thanks for your replies, no I have not got a letter yet. Just phoned them to see about paying a lump sum off and they said on a side note I'd be getting a letter in the next week or two with new rates, he couldn't tell me there what they would be.

I did hear that banls were charging people extra because they new they couldn't shop elsewhere because of their LTV but when I heard that AIB and BOI could not do it I just wanted to get confirmation.
 
http://www.*****************.com/mortgages/standard-variable-rates

If these rates are right then BOI should offer you a variable rate between 2.6% and 2.85%.

If you can pay off a lump sum now would be a good time since you've just come to the end of a fixed term. However if you have absolutely no savings or emergency fund, I'd keep a bit.
 
SueWho said:
http://www.*****************.com/mortgages/standard-variable-rates

If these rates are right then BOI should offer you a variable rate between 2.6% and 2.85%.

If you can pay off a lump sum now would be a good time since you've just come to the end of a fixed term. However if you have absolutely no savings or emergency fund, I'd keep a bit.
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thanks for that but those rates indicate that my LTV has to be under 92% which it is not.

I guess I'll have to wait and hear what the Bank says.

Cheers,
 
dire said:
thanks for that but those rates indicate that my LTV has to be under 92% which it is not.

I guess I'll have to wait and hear what the Bank says.

Cheers,
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Those BOI Rates on www.*****************.com are for new applicants - they will have a "standard" rate for existing customers that you will probably go onto .
 
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