Giving up a Tracker

Dangan

Registered User
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2
I have an unusual problem I think. We are looking to move and to that end have a sale agreed for our house. The property has two PTSB mortgages on it the first was a 20 year €50000 (this has 6.5 years to run )which became after approximately 3 years a tracker and the second taken out at the time the first changed was a one plan equity release we used for an extension. The total mortgage value of the property is approximately one third our sale price and therefore leaves a healthy deposit going forward. However now comes the problem the PTSB are telling us we have to transfer the tracker to our new purchase and because the repayment is nearly €300 per month this is severely limiting our borrowing ability for the next property. We are being told the central bank rules prevent our tracker being closed and as such the banks hands are tied. We have looked everywhere but can only find reference to tracker retention in cases of negative equity. We are appealing this but I would be grateful if anyone could shed some light on this. We know we can simply close down the accounts and move lenders but cannot see why we should have to.
 
Trying to understand:
  • You have one property, which is your PPR
  • You have two mortgages
    • one taken out originally which has 6.5 years left out of 20 years, and is on a tracker rate
    • one top-up mortgage, which was taken out 3 years after the first one, with a different interest rate (variable I assume)
  • You have an LTV of about 30%
  • You want to sell the property and move, and are already sale agreed.
The bank now tells you that you cannot transfer the tracker to whatever new house you want to buy?
Or are you saying that bank doesn't allow you to pay off the mortgage in full from the proceeds of the sale because you are on a tracker rate?

If it is the first point, that makes sense to me as there is no need to transfer any NE to the new property. You sell the house, pay 30% of the money to the bank to close the mortgage account. You have 70% of the proceeds left for the new house.
You will need a mortgage on the new house as well, and the bank tells you that they are not going to let you keep the tracker rate.

Makes perfect sense to me, why should the bank let you keep the tracker rate, if you are very much in a position to pay back the mortgage in full?
 
@newirishman I think you read it wrong...he says "PTSB are telling us we have to transfer the tracker to our new purchase"

That's what I don't understand, as it doesn't make any sense. He sells the house, pays back the mortgage (both, original on the tracker and top-up part) in full from the proceeds. Mortgage is paid back, account is closed.
Why would the bank say they can't do that?
 
Just to clarify its the second position ie they will not allow us to pay off the outstanding tracker and instead are telling us we must transfer it to the new property. As I said this means if for example we have a repayment capacity for €1000 a month but almost €300 would be used up on the tracker it limits our borrowing. I know this does not make sense but that is where we are. With the remaining term so short on the tracker their argument seems to be that in 6 years time we will have a dramatic drop in repayments however as we will not be able to purchase a property now it makes no difference.

Trying to understand:
  • You have one property, which is your PPR
  • You have two mortgages
    • one taken out originally which has 6.5 years left out of 20 years, and is on a tracker rate
    • one top-up mortgage, which was taken out 3 years after the first one, with a different interest rate (variable I assume)
  • You have an LTV of about 30%
  • You want to sell the property and move, and are already sale agreed.
The bank now tells you that you cannot transfer the tracker to whatever new house you want to buy?
Or are you saying that bank doesn't allow you to pay off the mortgage in full from the proceeds of the sale because you are on a tracker rate?

If it is the first point, that makes sense to me as there is no need to transfer any NE to the new property. You sell the house, pay 30% of the money to the bank to close the mortgage account. You have 70% of the proceeds left for the new house.
You will need a mortgage on the new house as well, and the bank tells you that they are not going to let you keep the tracker rate.

Makes perfect sense to me, why should the bank let you keep the tracker rate, if you are very much in a position to pay back the mortgage in full?
 
Sounds totally nuts to me! Why not just pay off the mortgage and re-apply to another bank for your new loan. Not your preferred option but I don't see why it would cause you a problem!
 
As per @44brendan this makes no sense - the sale of your current property and purchase of the new one are completely separate transactions. You sell your current property and repay/close both mortgages and apply for a new mortgage for your new property either with your current bank or a different one.

Have PTSB provided you with the restriction detail on the tracker in writing - would be great to see that on paper!!!
 
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