Sunday, October 21, 2012
Get your violins out
Sorcha Donohoe bought her two-bedroom house for â‚¬400,000 with a 37-year â‚¬310,000 mortgage. Herpay has been cut, and with a new child she is no longer able to rent out her second room, so she does not receive the â‚¬500 in rent that had previously gone towards her interest-only mortgage. The house has fallen in value and is â€œprobably worth about â‚¬170,000 at a pushâ€ leaving her in â‚¬140,000 negative equity. The Government's advice line suggested she sell the property to a housing association on a mortgage-to-rent scheme. â€œI just wouldnâ€™t do it. I purchased a house and I want to keep my house. I donâ€™t think mortgage-to-rent is a solution because people invested a lot of money in their house and to hand their house over to anyone is not viable for anybody,â€ says Sorcha.