David McCarthy on Galway Talks, 4th October 2012

Question:  I have a mortgage with AIB and I am in negative equity and I noticed recently that they launched a new mortgage to allow you to move to an alternative property.  Can you advise me on the details of this new offer?

Answer:  This is a new negative equity mortgage recently launched by AIB and EBS.  Essentially this product allows an individual to move home and bring the negative equity element of their loan with them.  There are strict income criteria to qualify for this mortgage, along with a maximum LTV of 92% on the portion of the loan for the new property.  The overall LTV on the entire mortgage when it is drawndown against the new property will be maximum of 175%.

This loan may assist people who have moved jobs from one part of the country to the other and are unable to get a mortgage in their new location due to the fact that they have an existing loan on a property which they have not sold.  In addition it may also benefit those looking to move to larger properties.

Unfortunately I believe that the qualification process for such a mortgage may exclude a lot of applicants.

Topic:  New Property Price Register launched (www.propertypriceregister.ie)

This website was launched in the last few days and is an accurate reflection of the sale prices of all properties sold throughout the country since the beginning of 2010.  The site will be updated regularly with current sales and should help in assisting purchasers and sellers in establishing the price of properties in their area.This is the first time such a register has ever been compiled and released in the public domain.

There is no doubt that the Irish curiosity with property prices will attract a lot of visitors to the site.