There are many homeowners in Ireland that are living in a house where the mortgage owed is more than the value of the house . This usually means they are unable to sell up and move house .
EBS and AIB recently announced details of a negative equity trade up mortgage for its customers who are in negative equity in their current home, but want to move to a property of greater value.
Ulster Bank and Bank of Ireland also started offering similar mortgages earlier this year.
The AIB Negative Equity Trade Up mortgage will enable customers who are in negative equity to sell their existing home and transfer whatever debt is left from their previous mortgage onto a new loan for a new property of greater value. The application process will involve assessing a customer’s ability to afford to repay a higher mortgage which will cover the negative equity on the previous mortgage as well as the new mortgage on a new home.
In order to qualify for this new product, customers must be able to demonstrate that they can afford the new larger mortgage and that they are not experiencing any financial difficulty.
AIB Conditions :
Owner occupiers only.
For the portion of the overall loan used to buy the new property, standard residential new home Loan to Values will apply. Up to 92% Loan to Value (LTV) finance available towards the purchase of the new property.
Maximum LTV of 175% on the total new loan, i.e. including the negative equity element.
The maximum total mortgage loan amount including the transferred negative equity debt is €700,000