We're planning on moving house this year, our current tracker mortgage is with AIB (ECB + 0.6%). AIB will allow us to keep the tracker but increase the margin by 1%, and pay normal variable rates on the excess over the tracker balance. This is all fine. However, while talking to an AIB staff member about mortgages they said the current mortgage would have to be cleared before drawdown of the new one. I took this to mean that all transactions relating to the sale of old house and purchase of new house took place on the same day but they were adamant that this wasn't possible. I am certain that this is how we did it the last time and how others do it now. The AIB staff seemed to think we should sell current house one week and buy the new one at a later date. This seems madness but maybe times have changed and thats how its now done.
Does the AIB "advice" seem correct?
Does the AIB "advice" seem correct?