can you bargain when getting rid of tracker mortgage?

crxsi09

I remember not long ago banks were buying people out of their tracker mortgages.
im looking to sell house and buy another and presume i will lose my tracker.
is there any way i can keep it or transfer it to new property, or would the broker still be offering deals of some sort to entice you to get rid of it that would make my new mortgage a bit cheaper etc in return for giving up tracker?
Cheers

davo10

crxsi09 wrote: »

I remember not long ago banks were buying people out of their tracker mortgages.
im looking to sell house and buy another and presume i will lose my tracker.
is there any way i can keep it or transfer it to new property, or would the broker still be offering deals of some sort to entice you to get rid of it that would make my new mortgage a bit cheaper etc in return for giving up tracker?
Cheers

The lender will not transfer it, trackers are linked to ECB rates which are at historic low, the lender is losing money on it as it may be below the prime lending rate at which banks borrow money from each other, so there is no benefit to letting you keep it if you move. As for getting a reduction, this seems to be a possibility if you agree to move from a tracker to a variable rate but I suspect there is some clause in it that requires you to pay the variable rate for a certain period.

cullenswood

davo10 wrote: »

The lender will not transfer it, trackers are linked to ECB rates which are at historic low, the lender is losing money on it as it may be below the prime lending rate at which banks borrow money from each other, so there is no benefit to letting you keep it if you move. As for getting a reduction, this seems to be a possibility if you agree to move from a tracker to a variable rate but I suspect there is some clause in it that requires you to pay the variable rate for a certain period.

Not a hope. Banks can borrow and very low rates at the moment. They won't do any reduction deals on the trackers, that ship, if it ever existed in a massive sense anyway, has sailed a while ago.

They might indeed let you carry over a tracker, at a higher rate, or shorter period. BOI did for 5 years from the time of new mortgage

machalla

Some banks (Ulster I know of) were doing a negative equity tracker move product. I had recently heard you can also do a positive equity but I have yet to verify that.

Essentially you purchase a new property, sell the old one. Dependent on the amount of negative equity you then pay ECB rate +2.5% on the negative equity portion. If the new house/mortgage is more expensive you pay the standard variable rate on the remainder.

Some details here that might explain it better.

http://digital.ulsterbank.ie/personal/mortgages/home-mover-2.html

seamus

A lot of the banks are still doing tracker promotions to get people off trackers. Bank Of Ireland for example will let you keep your current tracker +1%.

https://personalbanking.bankofireland.com/borrow/mortgages/mover/starter-tracker-for-mover/

In general though these schemes only apply to existing customers of that bank, and in the case of BOI above, the tracker amount is limited to the value of your current mortgage. If the new property requires a bigger mortgage, you have to finance the balance at current rates.

What bank are you currently with?

tHE vAGGABOND

Can confirm that Haven also have a "tracker transfer" product... [now owned by AIB & I think AIB, who I know have a similar scheme]. You need to have a tracker with them, in good standing. You transfer the remaining term & balance at the tracker rate plus 1% [So I had 24 years left on mine etc etc]. The balance of your loan is a normal variable rate loan, so 'technically' have two morgages. But they roll it into one.

The rules are fairly complex, to aviod anyone messing with it I assume. You must sell the place tracker is against, and pay it off in full [& clear the loan] before the new bit is unlocked.

In our case, what we are looking at this still works out around 400 quid a month cheaper than any other mortgage on the market today, which we looked at.