Those who sign up to a negative equity mortgage will lose their tracker

Homeowners who sign up for the new negative equity mortgages will lose their tracker mortgage, it has been revealed.

The new negative equity mortgages were approved by the Central Bank earlier this week with Bank of Ireland and Permanent TSB the two banks currently offering them.

The new mortgages allow homeowners who have good earnings to sell up their current homes and take some of the negative equity debt with them onto a new mortgage.

However, both Bank of Ireland and Permanent TSB have confirmed that they will not allow those taking on any new mortgage to retain their tracker.

Tracker mortgage holders have benefitted from the ECB’s record low rate of 1% but are costing lenders money.