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Moving mortgage to new house

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  • 04-08-2014 8:41pm
    #1
    paddylonglegs
    Registered Users Posts: 3,540 ✭✭✭


    Hi.
    I am with ICS bank and we are sale agreed on our house. There is 105k left on the house (standard mortgage,not tracker), we have sold for 235k, and are buying the next house for 195k. Since we will not need additional funds for the new house, we are hoping to move the mortgage to pay for the new house. Does anyone know if this is possible and if ICS will charge any extra on this? We currently qualify for mortgage relief hence I would like to keep the mortgage.

    Thanks for any info, our broker is on hols at the moment so can't get any answer to this


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    #2
    MouseTail
    Registered Users Posts: 1,663 ✭✭✭MouseTail


    You cannot move a mortgage like that. You will need to discharge the mortgage, and apply for a new mortgage, either from ICS or elsewhere.


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    #3
    wexie
    Closed Accounts Posts: 7,480 ✭✭✭wexie


    MouseTail wrote: »
    You cannot move a mortgage like that. You will need to discharge the mortgage, and apply for a new mortgage, either from ICS or elsewhere.

    Not too sure about that, we moved our mortgage (TSB) to a new house way back when. Perhaps ICS don't do it but it's certainly happened in the past. (I think technically we got a new mortgage but it had all the condition (rate etc) of the old mortgage)

    Not only that, they topped it up on the original rates for the new house.


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    #4
    The_Morrigan
    Registered Users Posts: 9,368 ✭✭✭The_Morrigan


    A mortgage is tied to a property, once the property changes a new mortgage must be drawn down, you cannot 'move' a mortgage to a new address.
    The lender may negotiate to lend on the existing terms, but it will be a new mortgage for legal and tax purposes and the old mortgage must be paid off and discharged.


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    #5
    alibab
    Registered Users Posts: 678 ✭✭✭alibab


    As others have said you cannot just transfer the mortgage you will have to apply for a whole new mortgage on the next property etc . Hopefully as it's a smaller amount and you have a large deposit there won't be a issue. This is really something you should have checked before going sale agreed etc . I would contact the bank ASAP and get things moving on the new mortgage so as not to hold up the sale of your own etc


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    #6
    paddylonglegs
    Registered Users Posts: 3,540 ✭✭✭paddylonglegs


    I have read that this year they have brought in tracker-mover mortgages, however I'm not sure if this applies to standard mortgages or if ICS are offering

    http://www.irishtimes.com/business/personal-finance/mortgage-shake-up-likely-as-ptsb-to-allow-movable-trackers-1.1705884


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    #7
    The_Morrigan
    Registered Users Posts: 9,368 ✭✭✭The_Morrigan


    paddylonglegs wrote: »
    I have read that this year they have brought in tracker-mover mortgages, however I'm not sure if this applies to standard mortgages or if ICS are offering

    http://www.irishtimes.com/business/personal-finance/mortgage-shake-up-likely-as-ptsb-to-allow-movable-trackers-1.1705884

    But that is moving the terms, not the mortgage. The mortgage is tied to the property once you no longer own that property you have to close off that loan and mark it as discharged. Then a new loan is drawn down against the new property.


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    #8
    MouseTail
    Registered Users Posts: 1,663 ✭✭✭MouseTail


    paddylonglegs wrote: »
    I have read that this year they have brought in tracker-mover mortgages, however I'm not sure if this applies to standard mortgages or if ICS are offering

    http://www.irishtimes.com/business/personal-finance/mortgage-shake-up-likely-as-ptsb-to-allow-movable-trackers-1.1705884

    These dont involve transferring mortgages, just 'porting', ie keeping the tracker rate on a new mortgage. Applicants still need to apply for a new mortgage, go through the checks etc. As you are getting a new mortgage, you will no longer get Mortgage Interest Relief. Im sorry, but I cant see any way around that.


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    #9
    wexie
    Closed Accounts Posts: 7,480 ✭✭✭wexie


    The_Morrigan wrote: »
    But that is moving the terms, not the mortgage. The mortgage is tied to the property once you no longer own that property you have to close off that loan and mark it as discharged. Then a new loan is drawn down against the new property.

    I think that a lot of people would consider that to be 'the mortgage' though. Of course there's now a different loan and a different security but as long as the t&c's stay the same it doesn't really matter to most people.

    Either way Paddy, you'll have to go through an approvals process etc. etc.
    Also, in this day and age it's questionable the bank will let you keep the original terms of your mortgage, especially if it's a tracker.


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    #10
    paddylonglegs
    Registered Users Posts: 3,540 ✭✭✭paddylonglegs


    wexie wrote: »
    I think that a lot of people would consider that to be 'the mortgage' though. Of course there's now a different loan and a different security but as long as the t&c's stay the same it doesn't really matter to most people.

    Either way Paddy, you'll have to go through an approvals process etc. etc.
    Also, in this day and age it's questionable the bank will let you keep the original terms of your mortgage, especially if it's a tracker.

    Hi. Thanks for the reply. I wouldn't even be looking for any changes, the current mortgage is less than 2 years old and it's not a tracker. I guess the benefit of a move would have meant the possibility of not jumping through all the hoops and waiting so long for a new one etc, but there ya go.

    On a side note, the house were buying is actually from the OH parents, they have 50k left on their mortgage and will be downsizing based on the cash from the sale. Any thoughts on how we could piggyback on to their mortgage or if it could transferred over to us?


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    #11
    The_Morrigan
    Registered Users Posts: 9,368 ✭✭✭The_Morrigan


    paddylonglegs wrote: »
    Hi. Thanks for the reply. I wouldn't even be looking for any changes, the current mortgage is less than 2 years old and it's not a tracker. I guess the benefit of a move would have meant the possibility of not jumping through all the hoops and waiting so long for a new one etc, but there ya go.

    On a side note, the house were buying is actually from the OH parents, they have 50k left on their mortgage and will be downsizing based on the cash from the sale. Any thoughts on how we could piggyback on to their mortgage or if it could transferred over to us?

    No, it's not possible.


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