Thanks for the reply 7seats - apologies, a little more detail: property currently worth 220k, mortgage outstanding 320k, term left 26 yrs, tracker rate ECB + 1.1%. This is our only property / primary place of residence.It really depends if the this is your Home or an Investment property?
Hi - just wondering if anyone can provide some info on personal experience or knowledge of the below:
I'm asking this question as it's one of the options that I see open to my family / current situation. I would rather run the scenario by this forum rather than be shot down by mortgage contact at the bank. If these questions / scenario seem ridiculous, apologies: I consider myself to be as some other posters put it a "financial noob", but given the times we now find ourselves in - I'm trying to educate myself as quick as possible about these type of scenarios.
- Property has a mortgage with tracker rate. Property value currently below what the outstanding balance on the mortgage is. Agree with a bank to sell for current market value. Bank accepts the proceeds from the sale as final settlement of the entire outstanding balance of the mortgage as they benefit from a cheap tracker being cleared. Is this possible?
- Does anyone know the calculation behind how a bank would determine the € value of the annual loss amount on a tracker mortgage. At what stage would the bank consider crystalising the loss making tracker?
- Not all tracker mortgages are loss making for banks - is this true? I understand it depends on the cost of borrowing but on the whole is that statement true?
Best case scenario is that they will give you a loan for the shortfall at mortgage rate.
walletpod will you rent another property if you sell your home? Or will you be able to live somewhere rent free?
Would you mind telling us who the mortgage is with? (Obviously it's understandable if you'd prefer not to.)
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