new central bank rules effect on moving a tracker mortgage

banshee

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Hello, I have a tracker with EBS ( 22 years left) and want to move it re purchase of new ppr. I have been told by EBS i can do so at +1%. Thats fine , but the sting is that I have been told that as the new CB rules state mortgages can only be calculated up to age 65, ( my tracker was calculated re age 70), and I am aged 50, this means that they will only allow me move tracker based on 15 years (65-50) and not what is left on the tracker which is 22 years !

This obviously has a huge financial effect on repayments. Is this correct, can they change the existing terms of my mortgage ion this way ? Surely the new CB rules should not effect pre-existing mortgages ? Or is it the case that this is ineffect a new mortgage and so the rules apply ? it all seems unfair to my mind . Any thoughts please ?
 
It's a new mortgage, so they can change the terms whatever way they want if you want a new mortgage.

It's a ridiculous rule and I suggest you write directly to the Governor and suggest to him that he change the rule.

Brendan
 
I'm not aware of any Central Bank rule that restricts banks from offering new mortgages that are repayable after a borrower's 65th birthday.

I suspect this has more to do with EBS adopting AIB's lending policies.
 
Thank you for replies.
Indeed, it seems it is a case of the EBS following AIB internal banking rules, and not a CB rule ,which was reason given when I queried this with EBS.

This from AIB's tracker retention documentation.......
"You can only avail of Tracker Retention for the amount of time remaining on your existing tracker mortgage loan(s) at the time of application, subject to AIB’s maximum age. i.e: subject to clearance by your 66th birthday or on retirement if earlier; or if you are self employed by your 71st birthday".

It would seem that EBS is no longer a separate , self governing and decision making entity and any interaction with them is in effect an interaction with AIB. Alas, it would appear I have unwittingly, become a customer of AIB.
 
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