house in neg equity possible to buy house and carry equity

[cc117]

Hiya currently in house worth around 90,000 and owe 120,000. Hate living here we bought with the intention of moving but sadly that didnt happen. A neighbour has said her mother would like to buy the house with an offer of 110,000. We saw a house we like for 99,000. We are currently paying interest only for 6 months. What I am asking (but knowing the answer) is there any hope that PTSB would let us buy where we want to live and carry our negative equity with us? I know it's a long shot but really want to move before the kids get any bigger. Any advice appreciated thanks

 

[Oscaresque]

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[swauna78]

They wouldn't allow us to do this but our shortfall was going to be more than 10k. It's worth asking though.

Is there any way at all you could add the 10k to the selling price yourselves so that you can clear the mortgage and get as far away from PTSB as you can?

 

[huskerdu]

Do you have any savings ? I assume not.

If you do not, then you will not have a deposit to buy a new house anyway.

 

[cc117]

Thanks for the replies. We dont have savings. But do you think paying of the mortgage would be a good idea. I mean we would have to rent and I was pricing around and it costs much more than monthly mortgage

 

[swauna78]

cc117 - It depends on whether you are really that desperate to move I guess whether it's a good idea to clear your mortgage through the sale!

You say rent is more expensive than your mortgage.....but don't forget you are only paying the interest on your mortgage currently which is doing nothing to bring down the capital amount.

I presume you want to move to the area where you saw the house for 99k? Is that where you have been pricing rent options?
Could you rent in a cheaper location while you are saving the deposit for the 99k house?

 

[Bronte]

You'd be better off selling first and then renting while you pay down the negative equuity and deciding to purchase later if it makes sense. I would certainly hope the bank will let you sell with only 10k of negative equity.