Advice about negative equity on a house

What country paddletoe, Ireland, Spain?

britain

If he has other assets why would a bank agree a write off. How much equity is in the other house.

If as you say he has equity in his other house then the bank will cop for that. Can't see them doing a deal.

No idea how much equity is in the other house. Obviously I don't think he can just hand in the keys to the second house otherwise he could just go bankrupt and write off the 80 odd k himself.

How did he manage negative equity here!. I think the answer is a categorical no, It would set a precedent that the banks would not want to set. Banks are notorious in their treatment of borrowers.  My ex worked all her life in banking, when I asked her a similar sort of question some years ago she said it's against bank rules. I did not ask her to explain that, just accepted the answer.

Unless someone on here knows better?

Have not got the full details but he mentioned something along the lines I stated in my original post as a possibility. Just wanted to know if he was right and how it might work out.

He took out another mortgage on this house at around the peak time to finance a bigger house in the country and since then prices have fallen about 50% in the area I live.

Must be N. Ireland, the same thing will happen in England.

I think he is facked. They might suggest he remortgages the house with the equity if there is enough to cover the shortfall.

Unfortunately, this is the darker side of 'free money'. Somebody has to pay...always.

Loyal borrowers are being turned down for the best mortgage deals because banks are scared of breaking new rules, it has been claimed.

Homeowners who have never missed a repayment are among thousands being turned away in a crackdown on lending.

Banks and building societies admit that although they could give better deals to customers who have had mortgages for years, many may miss out because lenders fear breaching the new regulations.
Homeowners who have never missed a repayment are among thousands being turned away in a crackdown on lending, experts warn (file pic)
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Homeowners who have never missed a repayment are among thousands being turned away in a crackdown on lending, experts warn (file pic)

Even customers with excellent credit records and big deposits may be unable to lock up a cheap fixed deal. And thousands of homeowners who want to take bigger loans for a kitchen extension or loft conversion are also being denied.

It means many families face being turned into ‘mortgage prisoners’, unable to get another loan and trapped on their bank’s high rates of interest, the Council of Mortgage Lenders has warned.

They may be made to struggle further if the Bank of England hikes base rate above its current low of 0.5 per cent as expected.

The CML has demanded talks with City regulator the Financial Conduct Authority.

Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-2738194/New-mortgage-rules-hurt-ALL-borrowers-Best-deals-denied-loyal-customers-never-miss-payment.html#ixzz3LvBN9hwo
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There is only one reason the banks don't want to lend to loyal customers and that is because they know there is a massive crash coming.

There won't be a massive crash, they'll just kick the can a bit further down the road and print some more money.

lfc1971, that's bollix banks are sharks they will sell"products" to loyal customers regardless. My ex had 16 years branch management experience before becoming a financial advisor. as she was in the top 3 in the country for her bank year on year, we got to travel the world on Jollies called conventions, sounds better doesn't it 350 employees at a time, Best hotels (table bay at the waterfront in SA Ritz Carlton in Singapore, etc etc) + spending money helicopter trips the works.

The mantra from the top guys, from Bob diamond down on the gala night speech was how they were going to wring even more money from existing customers.

boxingthefox the banks are afraid of being left with properties that have halved in value.

It would be more accurate to say they are wary of people going bankrupt but not afraid. they can sell their loans to other greedier banks al la the great sub prime fiasco. Banks in this country make billions on house loans they can handle the defaulters with ease.