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Holding on to your Tracker

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  • 11-09-2012 5:32pm
    #1
    3fetlar
    Registered Users Posts: 9 ✭


    I just want to put this question out there!

    Can customers who are not in negative equity but who wish to upgrade retain the tracker mortgage on the existing loan, and pay variable on the new loan.

    Circumstances change as we know. Has anyone managed to negotiate this? Surely our banks need to be more creative to spur the property market. Today many people are reluctant to move as they fear losing their tracker rate.
    Thoughts?


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    #2
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    3fetlar wrote: »
    I just want to put this question out there!

    Can customers who are not in negative equity but who wish to upgrade retain the tracker mortgage on the existing loan, and pay variable on the new loan.

    Circumstances change as we know. Has anyone managed to negotiate this? Surely our banks need to be more creative to spur the property market. Today many people are reluctant to move as they fear losing their tracker rate.
    Thoughts?

    You may be able to negotiate but I would imagine the most the bank would do is give the tracker rate on the amount for your mortgage balance at present and the extra amount required at a different rate. Would make some sense as trackers are loss makers and need banks profitable to survive. I dont see why you should get to hold a tracker for the full new amount but acceptable you would be let have it on the balance you have at moment.


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    #3
    3fetlar
    Registered Users Posts: 9 ✭3fetlar


    Yes this is what I mean. The new amount will be a different variable rate.

    God it would really help!


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    #4
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Who do you bank with? Have you approached the bank?


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    #5
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,711 Mod ✭✭✭✭Henry Ford III


    It'll be a new mortgage and trackers aren't available these days.


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    #6
    roro2
    Registered Users Posts: 412 ✭✭roro2


    Henry Ford III wrote: »
    It'll be a new mortgage and trackers aren't available these days.

    I'd be amazed if anything other than this happened.


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    #7
    3fetlar
    Registered Users Posts: 9 ✭3fetlar


    Why couldnt it happen. Technically the tracker will remain the same. We havent missed any payments. The new amount being sought will be a different agreement. If they can do it for customers in difficulty why can they do it for customers who are not in difficulty. I'm not asking for a new tracker as I know they dont exist... I just want to keep the tracker I'm on. I dont think I am asking for a handout. The extra 200 or 100 it will save us will go on the budget this year :(


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    #8
    touts
    Registered Users Posts: 6,493 ✭✭✭touts


    3fetlar wrote: »
    Why couldnt it happen. Technically the tracker will remain the same. We havent missed any payments. The new amount being sought will be a different agreement. If they can do it for customers in difficulty why can they do it for customers who are not in difficulty. I'm not asking for a new tracker as I know they dont exist... I just want to keep the tracker I'm on. I dont think I am asking for a handout. The extra 200 or 100 it will save us will go on the budget this year :(

    Unfortunately from the bank's viewpoint the biggest mistake they ever made was to give you and many others a tracker. They are losing money every month on your mortgage. It isn't your fault but that won't help your request. There isn't a hope that they will let you keep the tracker. Sorry!


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    #9
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    If you are buying a new property, your existing loan is secured on your existing property - it is not transferable. You redeem the old mortgage and take out a new one. The bank can only offer you a loan from its current new business product portfolio, and that won't include tracker mortgages


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    #10
    OldNotWIse
    Closed Accounts Posts: 12,468 ✭✭✭✭OldNotWIse


    On what grounds can they take someone off a tracker? My brother and I pay our parents mortgage and are managing as its a tracker but if it wasn't we'd be fecked altogether. I know they are trying to "buy" people out of them but can they take you off it as "punishment" ie; if you are late paying etc?


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    #11
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    OldNotWIse wrote: »
    On what grounds can they take someone off a tracker? My brother and I pay our parents mortgage and are managing as its a tracker but if it wasn't we'd be fecked altogether. I know they are trying to "buy" people out of them but can they take you off it as "punishment" ie; if you are late paying etc?

    No they cant take people off it for late payments. Technically they could take it off a tracker rate if mortgage holder no longer living there and getting rental income as would be classed as investment property rather than a PPR (primary principle residence) although this doesnt happen much either. Also the regulator as ensured the bank will not try buy people out of tracker rates as works out much worse for the customer in long term.


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