Growing family? Need to relocate for work? Want to down size? Talk to us about a Negative Equity Mortgage.
Negative equity on your current property can be seen as an obstacle to making your move happen. AIB now has a mortgage designed to help you make that move out of your existing home.
Negative equity happens when the value of a house is less than the balance of the mortgage owed. That means the proceeds from selling the house would be less than is needed to clear the mortgage in full.
Typically, people want to move to a different home because their family is either growing up or have grown up and moved to their own home or they want to relocate for personal or professional reasons.
The Negative Equity Mover mortgage allows customers to transfer the negative equity balance of their mortgage onto a new loan for a new property. This means that the new property will be in negative equity, as your new mortgage will include the negative equity balance from your old house.
What is a Negative Equity Mover mortgage?
An AIB Negative Equity Mover is available to our existing mortgage customers who are in negative equity and want to buy a new home A Negative Equity Mover allows you to add the negative equity balance from your current home onto the mortgage for your new home.
AIB has two Negative Equity Mover mortgages available, Trade Up and Trade Down, the difference between these are
Negative Equity Trade Up - this is where the value of the new property is of a higher value than the current value of the existing property. Also, 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 - this is where the value of the new property is of a lower/equal value than the current value of the existing property. Also, the total new borrowings, including the negative equity from the old property, must be of an equal or lesser amount that the existing loan.