Moving with negative equity
What is negative equity?
Negative equity happens when your home is worth less than what you still owe on your mortgage. This means if you sell your home, the money from the sale will not be enough to fully pay off your mortgage, and you’ll still owe money to the lender.
Can I move house with negative equity?
Some people think negative equity means they cannot move, but we may still be able to help. In some cases, we can offer a mortgage for a new home and carry over the amount you still owe from your current mortgage to a new mortgage.
Who is this option suitable for?
This option is open to you if you:
- Are in negative equity.
- Are an existing Bank of Ireland mortgage customer with a satisfactory repayment record of at least 2 years.
- Live in the home (negative equity option is not available to buy-to-let customers).
- Are an apartment holder who wants to move to a bigger property.
- Are a parent and need more space for a growing family.
- Need to move location due to job opportunities or family circumstances.
- Want to build your own home.
Important details to note
- The maximum loan-to-value (LTV) for this option is 175% (including negative equity).
- The maximum LTV for this option for self-builders is 125% (including negative equity).
- The maximum mortgage loan term for this option is 35 years.
- Cashback offer of up to 3% of your mortgage drawdown back in cash. Terms and conditions apply.1
- If you have a tracker mortgage you may be eligible for our ‘Tracker for movers’ option.
- Standard new business fixed and variable rates apply.
How much can you borrow?
When you sell your current home, you can carry forward the negative equity onto your new mortgage.
If you’re trading up
moving to a property of greater value than your current home
Movers can generally borrow up to 3.5 times your gross annual income (or combined income for joint applicants) and up to 90% of the new property purchase price. This means you must pay at least 10% of the new property purchase price, stamp duty, and other costs like legal fees and estate agent fees.
If you’re trading down
moving to a property of lesser value than your current home
Movers can generally borrow up to 3.5 times your gross annual income (or combined income for joint applicants) and up to 100% of the new property purchase price.
How does trading up work?
| Current property | |
|---|---|
| Value of current property | €180,000 |
| Amount you still owe | €245,000 |
| Negative equity | €65,000 |
| Current loan-to-value ratio | 136% |
| New property | |
|---|---|
| Price of new property | €350,000 |
| New mortgage (90%) | €315,000 |
| Negative equity carried forward | €65,000 |
| New mortgage needed | €380,000 |
| New loan-to-value ratio | 109% |
The lender is Bank of Ireland Mortgage Bank u.c. or Bank of Ireland. Lending criteria and terms and conditions apply. A typical mortgage to buy your home of €100,000 over 20 years with 240 monthly instalments costs €613.16 per month at 4.15% variable (Annual Percentage Rate of Charge (APRC) 4.3%). APRC includes €150 valuation fee and mortgage charge of €175 paid to the Tailte Éireann. The total amount you pay is €147,482.50. We require property and life insurance. You mortgage your home to secure the loan. Maximum loan is generally 3.5 times gross annual income (4 times gross annual income for first-time buyers) and 90% of the property value. A 1% interest rate rise would increase monthly repayments by €53.89 per month. The cost of your monthly repayments may increase – if you do not keep up your repayments you may lose your home. Available to over 18s only. The mortgage will be subject to assessment of suitability and affordability. APRC calculations are based on the cost per month on a €100,000 mortgage over 20 years.
Being mindful about borrowing
Your financial wellbeing is our priority. Discover more about the relationship between borrowing and debt to make informed decisions about your mortgage and future.
Need a helping hand?
Get support and assistance from our mortgage specialists, 9am to 5pm, Monday to
Friday. Choose your preferred way to talk to us.
Are you having money worries?
Find yourself under financial strain? We’re here to listen, support, and help find a way to relieve the pressure.
Bank of Ireland Mortgage Bank u.c. trading as Bank of Ireland Mortgages is regulated by the Central Bank of Ireland.
Information and legal notices
Legal and regulatory information for mortgages.