askpaul explains about getting a mortgage when you’re in

negative equity:

Hi there, if you’re watching this video or reading this content, I presume your mortgage is in negative equity. If you’re in negative equity with your mortgage, there is a solution. You don’t have to be stuck in the same property as it is possible to get a mortgage on what’s called a negative equity trade-up.

What does this mean? Any trading bank in the Republic of Ireland at the moment will do this. Unfortunately, if you had a Bank of Scotland mortgage, and you’re now with a new mortgage lender like Pepper, you’re not going to be able to do this but, with any other major banks in Ireland that are still trading, you can do this.

So, let’s take a working example. Let’s say you have a mortgage for €200,000 at the moment, and your property is only worth €180,000. That means you’re €20,000 in negative equity. If you want to go for a new mortgage, even though your second time-buyer, your bank does not follow the central bank guidelines for second time buyers. That means you do not need a 20% deposit, you only need a 10% deposit, which should be a really good help to you.

In that case – let’s stick to the example above – let’s say you’re going for a €250,000 mortgage, you only need a 10% deposit, which is €25,000. What you’re allowed to do with that is carry over the negative equity. So, the minus €20,000, from your existing mortgage on to your new mortgage, which is really good. Not many people know about this so, if you’re one of these people, please get in contact with us today. Or, if you know anyone, like and share the video or maybe send them a link to this video.

*please note as of January 2023 the Central Bank has reduced the deposit requirement for second-time and subsequent buyers from 20% to 10%.

The one final thing I must say is that you need to go back to the bank directly. This is not something that askpaul can do for you, but we can definitely give you a few tips that will help you along the way. Hope you found this informative!

 Contact askpaul today for help in applying for a mortgage