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Moving to a bigger house - can I move the mortgage?

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  • 08-02-2011 11:53pm
    #1
    Broche07
    Registered Users Posts: 54 ✭✭


    I'm thinking a few years ahead and assuming all is well I might like to move to a bigger house and take on a larger mortgage. At present I have a tracker and I am wondering is the mortgage tied to the existing house. Without asking the bank I assume there are 2 options available.
    1. I ask to expand the mortgage, the bank might say this is ok but there is no chance I'll get a tracker on it.
    2. I have to cancel the tracker and take out a brand new mortgage.

    Any advice would be most welcome


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    #2
    3DataModem
    Registered Users Posts: 3,997 ✭✭✭3DataModem


    You will almost certainly lose the tracker when moving house I'm afraid.

    If it is a keenly priced tracker (+1% or similar) then don't give it up lightly. Treat it like an asset.


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    #3
    rainbowtrout
    Registered Users Posts: 15,382 ✭✭✭✭rainbowtrout


    Mortgages don't move with you. They are attached to properties. You will have to pay off your existing mortgage and take out a new mortgage on your new house, so you are likely to lose the tracker as banks aren't offering them anymore.


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    #4
    Kennie1
    Registered Users Posts: 302 ✭✭Kennie1


    There's no "likely" about it, you will pay off the mortgage on your existing house and will have a new variable rate mortgage for the new house which will actually increase the overall cost of your new house compared to the cost of your existing home e.g. Lets say that you have a 250k mortgage over 30 years and have a tracker at 2% for the life of the mortgage (obivously the rate will be higher in the future) the total finance cost would be 82500. Then lets say that you move the mortgage to a variable of lets say 4% over the same term the cost of credit would shoot up to 179500 over the term.

    This is why you should think carefully before you decide to trade up


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    #5
    Broche07
    Registered Users Posts: 54 ✭✭Broche07


    thanks for all the advice. Not want I wanted to hear but now I know.


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