Bank of Ireland and Permanent TSB  have confirmed that they will make available, albeit in limited circumstances, special mortgages that will enable borrowers to effectively carry over negative equity from their existing home and add it onto a new home loan.  This will come a great news to families who need to trade-up but could not find a solution to date.

The Central Bank have not publicly approved this product but rather, has commented that  banks intending to provide these negative equity mortgages consult  with them.

The qualifying criterion have not yet been made available, however, it is likely that this type of mortgage will only be made available to prime applicants who can demonstrate strong repayment ability  for the entire amount i.e. loan and carried over negative equity together with the necessary charges and interest.  It is unclear whether an increased interest rate will apply.

More information will be posted as soon as it is available.

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