Why would you sell the apartment?
mine: ptsb 1.3% 198k outstanding valuation 145k in June
The interest is costing you only €2,500 a year. Presumably you are getting around €7,000 a year in rent?
This is a very profitable investment for you. You are probably paying €900 a month in repayments, but €700 of this is capital. If house prices don't change over the next two years, your tenant will have reduced your negative equity by around €16,000. If you have to sell it then to trade up, fine.
But this is a great investment and you should try to hold onto it as long as possible.
1) Yes, ptsb have to give their permission for you to sell the apartment at a loss. They would want your savings to pay off the shortfall immediately. The remaining balance would become an unsecured loan.
2) AIB would not take on the negative equity from your apartment. You would not want them to anyway, because ptsb will probably allow you to keep the tracker on the mortgage shortfall which would be a lot cheaper than AIB's standard variable rate.
3) AIB would probably not give you a mortgage if you had unsecured loans of €60k outstanding.
Brendan