Who do I speak to about mortgage?

N

nucky

Registered User
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Hi folks,
I am looking for some advice.

I have 170k remaining on my mortgage. The current value of the house is 100k. The size of the house is really restricting myself and my wife from having more kids.

We have had the mortgage for six years and have never had a problem paying. Our current monthly payment is 620 euro, on a tracker mortgage and our earnings are 3,500 per month. If possible, we would be happy to sell it for 100k, rent another property and pay the rest off as a loan to the bank so we can move on with our lives.

I'm wondering who i would approach in the bank to discuss the possibility of this? Would it be the local bank manager or do I have to go higher?

Thanks
 
I'd be interested in any replies you get to this.

Myself and my partner have no trouble repaying our current mortgage (and in fact overpay it) but we need to move if we want to have any kids. There is barely enough room for 2 adults, and no room at all for a child. Our figures for outstanding mortgage, and possible selling price, are very similar to yours.

I approached my financial institution (EBS) with the same plan as yourself - sell current home, pay the shortfall by way of a loan, and rent more suitable accomodation. They said they wouldn't allow a sale for less than the outstanding mortgage, and that I would need to give them a cheque for the shortfall to close the sale. They will not make arrangements for a personal loan.

I followed this up by way of an email to my branch manager, and also an email to their CEO. No joy, although the CEO was nicer in his reply by saying this was something they were looking into later this year - but for the meantime their focus was on people in neg equity who had repayment difficulties.

It is difficult to decide to realise an approx €70k loss in order to have children but we can't wait 10years for the economoy to recover. We probably have another 2-3years before we would have difficulties in having children so the decision is looming!!

Best of luck to you.
 
Instead of taking a €70k loss, would you be prepared to extend. The cost of extending your home would be less than the loss your prepared to take. If I was in your shoes, I would extend and upgrade and wait for the property market to stabilise.
 
Im not saying that this is a perfect solution, but could you rent out your current property, and then rent somewhere bigger yourselves to allow you to expand your family. After some period of time when more of the mortgage is paid off the amount outstanding on the mortgage will be attainable by the sale value of the property - allowing you to sell it without the negative equity issue.
 
I was thinking along the lines of graftgirl and truthseeker as possible options.
Also your mortgage payment is a low % of wages so I would be saving a lot and or overpaying a little.
 
Renting existing house is possible option, extending I imagine would be harder from a finance point of view as I presume you will be unable to borrow for it unless you can get personal loan or credit union loan.
 
Go first to the local bank manager and see how you get on. Some people have been allowed to sell with negative equity.
 
My situation is nearly identical to Leaky1's. Extending not an option, renting this house and renting another an option we may have to consider further down the line but realistically we have no experience being landlords and after we pay tax on the rental income we would have to suppliment the mortgage. I just don't seem to be able to get the numbers to stack up on that option.


We approached the bank personally (although not the branch manager) and were shown the door. They would not even entertain the suggestion of a personal loan attached to the house even though we technically have approval in principle for an amount much higher then the neg equity amount and another mortgage.

It seems that once you are not a default risk you are on your own.
 
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