Tracker mortgage query

Tombo2001

Tried AIB, but they had no one available who knew the answer.....hence the question here.

If I have a tracker.....and I sell the house......am I legally obliged to repay the loan immediately.

e.g. if outstanding loan balance is 100k, and house value is 80k......

If I sell the house, can I bank the cash and continue to repay the tracker over the remaining period.....?

Also......if I cant do that....

If I sell the house, and pay off the 80k that I get for it.......does the remaining 20k remain in a tracker structure or revert to SVR?

Many thanks in advance.

3DataModem

Tombo2001 wrote: »

Tried AIB, but they had no one available who knew the answer.....hence the question here.

If I have a tracker.....and I sell the house......am I legally obliged to repay the loan immediately.

e.g. if outstanding loan balance is 100k, and house value is 80k......

If I sell the house, can I bank the cash and continue to repay the tracker over the remaining period.....?

Also......if I cant do that....

If I sell the house, and pay off the 80k that I get for it.......does the remaining 20k remain in a tracker structure or revert to SVR?

Many thanks in advance.

Question 1:
You can't bank the cash and keep paying the tracker. Reason: bank won't have any deeds or other security anymore.

Question 2:
The 20k will almost certainly become a personal loan, not a SVR mortgage.

chris85

3DataModem wrote: »

Question 1:
You can't bank the cash and keep paying the tracker. Reason: bank won't have any deeds or other security anymore.

Question 2:
The 20k will almost certainly become a personal loan, not a SVR mortgage.

+1

Agree on this. Bank will not release the deeds of the house until they money from sale of house. Solicitors involved will sort this out.

murphaph

3DataModem wrote: »

Question 2:
The 20k will almost certainly become a personal loan, not a SVR mortgage.

...and that's if the bank will allow the sale to proceed in the first place.

Rebel1977

Should get your Solicitor to check with the mortgage dept to see what the exact procedure is

smcgiff

This is banking 101 - I doubt that people in AIB couldn't answer this. I'd suspect the porter could.