What the current process for trading up?

D

DaveD

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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?
 
Hi There,

We went through this same process last December with AIB so unless things have changed since then I have a very good idea of the process.

We sold and bought the same day. So closed the sale of our existing property in the morning, clearing our old Tracker mortgage and then closed the purchase that afternoon.

The funds for the new mortgage were actually with our solicitor a couple of days before we closed our sale, ensuring then we could complete both on the same day.

At the time AIB also advised me that we could sell, clear our existing mortgage and then avail of the tracker mover mortgage within a "reasonable" time frame after that. This was to allow for the instance that we had sold and our new home wasn't ready in time.

Hope that helps!
 
Thanks laura28, that does indeed help and makes perfect sense, and is also what I would expect. I've managed to talk to someone else in AIB this morning who has also confirmed that all transactions can take place on the same day. It would appear that some staff in AIB are not quite as knowledgeable as they might be!
 
Yes I would agree! We had a very knowledgeable account manager and that made the whole process much easier.
Best of luck!
 
I've been through the same process last February. Sales closed on the same day. I moved from the old property straight to the new one.

Best of luck!
 
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