negative equity mover

Negative Equity Mover

I’m in Negative Equity. Can I Move Home?

First thing’s first. What is negative equity?

This is what happens if your house is worth less than your mortgage – which means that if the house was sold, the sale price wouldn't cover the mortgage in full. Well, despite what many think, it’s not the end of the world! You’re not stuck. In fact, there is ‘room to move’.

At EBS our negative equity mortgage allows our customers who are in negative equity to move. You can sell your current home and add any debt left onto the mortgage for a new home. Your new home will also be in negative equity, but you’ll be in a house you love.

Have a negative equity mortgage question? Request a call back from your local mortgage coordinator here.

What Are the Loan Options for Negative Equity Buyers?

There are two basic type of loan for negative equity buyers with EBS:

  1. Negative Equity Trade Up 
  2. This is where you can add the negative equity to a new property of greater value than the value of the existing property.

  3. Negative Equity Trade Down
  4. This is where you can add the negative equity to a new property of lesser or equal value than the value of the existing property. For full details of this option, please see our Negative Equity Home Movers brochure here.

How Much Can I Borrow as a Negative Equity Buyer?

The amount negative equity buyers can borrow all depends on the price of their house, and if this is higher or lower value than their existing home. Our mortgage coordinators will be happy to go through any questions you might have.
 
  • 90% loan to value (LTV) finance is available to you towards the purchase price of your new property.
  • Negative Equity Trade Up- The Loan to Value (LTV) applicable to the total new borrowings, including the negative equity from the old property, must be a lower LTV than that of the existing property.
  • Negative Equity Trade Down - The total new borrowings, including the negative equity from the old property, must be of an equal or lesser amount that the existing loan.
  • The maximum loan to value (LTV) of the new property, including the residual debt, cannot be more than 175%. The maximum loan balance applicable for a Negative Equity Trade Up is €700,000, there is no maximum loan balance applicable for a Negative Equity Trade Down.

Features & Benefits

  • Competitive interest rates including Variable relative to your loan to value and Fixed rates
  • For customers who are unsure of what type of rate to select, EBS provide the option of splitting the loan amount in two, so you can avail of both the variable interest rate on a portion of the loan and a fixed interest rate on the remaining portion of the loan
  • Max LTV of 75% for one bedroom properties
  • Repayment term up to 35 years, subject to the age of borrowers
  • You will need to be over 18 and security will be required before you can obtain a mortgage
  • What you can borrow will also depend on what you can comfortably afford to repay monthly. This typically should not exceed 35% of your disposable income, however this may vary according to individual circumstances
  • You will require Mortgage Protection Cover which can be arranged via EBS or you may purchase this through another Insurance company
  • Keep in mind you will also need money for Valuation fees (you will need to use a valuer from the EBS Residential Mortgage Valuers panel), Legal fees, maybe a Surveyor and Stamp Duty fees. Also remember possible repairs and decoration costs on your new home.

Fixed or Variable?

  • You will be well acquainted with fixed or variable rates already, which you pay on your mortgage. But there could be many things that have changed since you last made the decision. Our mortgage advisors will be happy to guide you through the best option for you.
  • You can see a full listing of our current rates here.
  • And if you still can’t choose? Well, you don’t have to. You can have your cake and eat it too. For customers who are unsure of what type of rate to select, EBS provide the option of splitting the loan amount in two, so you can avail of both the variable interest rate on a portion of the loan and a fixed interest rate on the remaining portion of the loan.
  • If you take a Mortgage with a fixed rate of at least one year and decide to repay whole, or part early, if you convert to a variable interest rate, or, if you change to another fixed interest rate you may incur an early breakage cost payable to EBS d.a.c. You can locate information as to how this early breakage charge is calculated and in what circumstances this charge arises by selecting ‘Negative Equity Movers Mortgage General and Regulatory Information’ below, under the heading ‘Our mortgage interest rate options’.

Warning: If you do not keep up your repayments you may lose your home.

Warning: You may have to pay charges if you pay off a fixed-rate loan early.

Warning: The cost of your monthly repayments may increase.

Warning: If you do not meet the repayments on your credit agreement, your account will go into arrears, this may effect your credit rating, which may limit your ability to access credit in the future.

Warning: This new loan may take longer to pay off than your previous loans. This means you may pay more than if you paid over the shorter term.

 

 

 

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