Want to sell house at a loss and transfer negative equity

[dublin100]

Hello all,
I had to move to take a promotion. I have a house with €169,000 left on mortgage, having paid off €30,000 since I bought it. It is now valued at approx €125,000. My lender is EBS. My wife has an apartment, which is in such bad negative equity we'll never be able to sell it, but it the rent covers most of the mortgage. We rent a house now.
I want to buy a family home in my new area. Would EBS be willing to let me transfer the negative equity or even write off some of the negative equity? Do they have a policy on this?
We will be getting money from parents for a deposit on a new house.

(This is all assuming of course that they or another bank will give us a mortgage. We calculate that with tax on rental income and the rent we pay saved we can afford a mortgage for up to €180,000)

Thanks

 

[Brendan Burgess]

Hi Dublin

Is it a tracker mortgage? If so, then you are probably better off keeping it as the rent will exceed the interest paid so it will be a good investment.

If it's a tracker, the bank may allow you to pay it off early but your new mortgage would be at the high standard variable rates.

Given the excess borrowings you have, I think you would be much better off trying to reduce those rather than taking on new borrowings and exposing yourself further to a rise in interest rates or a further fall in house prices.

brendan

 

[CadillacMan]

EBS do not have a policy on this as far as i know, they operate on a case by case basis.

One problem you have in transferring the negative equity on your current property to a new mortgage with EBS is that they are only offering 80% LTV. The other lenders will refuse to take on your existing negative equity to a new mortgage with them. This means that your only hope is that you are able to persuade EBS to give you an unsecured loan on the balance.