# Could I be entitled to a Tracker Mortgage..Danske Bank.



## metropolitan (29 Mar 2017)

In 2005 I bought a house and was put on a tracker mortgage. In 2006 I bought another property. NIB ended the loan and created two loans on fixed rates for 2 years, and after to return to SVR. Im trying to find out if I could get the original tracker back as I still have the same property I had on a tracker. I have no idea why I was not just put on two trackers, or a least offered a tracker rate at the end of the fixed. Could I have a case?


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## Brendan Burgess (29 Mar 2017)

Hi Metro

This is interesting. 

You had a tracker on a property. Was it your home?   In 2006, they ended this loan and you took out an entirely new loan, thus losing your tracker.  What was their explanation at the time? 

Was the new loan on your home increased to fund the deposit on the second property? 

Brendan


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## metropolitan (29 Mar 2017)

Hi Brendan,

Yes it was my home and it had a lot of equity about 180k. They allowed me to buy my new home and use the equity on that as a deposit. NIB created two new loans for the new properties taking me off the tracker. They advised me to go fixed for two years. What so frustrating is that my brother did something similar around a year before and has two trackers?


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## lukas888 (29 Mar 2017)

When you say they "advised" did they actively encourage you to fix,or did you not have the option to continue with your tracker?


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## metropolitan (29 Mar 2017)

Hi Brendan. 

I bought the house off my Father in Oct 2005
Home Loan 220k
Home Value 400k
Equity  180k

Then I moved to Dublin and bought an Apt July 2006. I was happy to get a mortgage for the two properties as house prices in Dublin were crazy. The only mortgage at the time really was a tracker. The same bank manager that I  got the first mortgage said To me that Id loads of equity and to call into him and he'd sort something out. We met and the deal was a two year fixed on both. ( It was never discussed) I just presumed Id return to the tracker. As I said it was all that banks were selling. Infact the paperwork said SVR.

Post transaction
New apt ( bought it for 360k plus 20k stamp duty =380 k) used equity from other house so created a mortgage for 308k
Value 360k
Equity 52k

Investment ( previously my first home)
Home loan 290k ( previously 220k)
Home Value 400k
Equity 110k

Hope this helps and I havent confused you.


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## metropolitan (29 Mar 2017)

Hi Lukas888

See coment to Brendan above.
Tbh when I went into the bank for the second mortgage the two new fixed rates is what I was given and that was it. I didnt really get to pick and choose. This was the deal and as far as I was concerned the only one. The only thing people were talking about was "tracker mortgages" I just presumed they wanted me to settle into the mortgage for two years and then revert to tracker...thats what I was on in 2005.


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## Brendan Burgess (29 Mar 2017)

OK, so you had a home loan of €220k. You borrowed another €70k to bring it to €290k. 

Normally, in these cases, the lender just issues a new account number and gives you another €70k.   

It's odd that they cancelled the old loan and issued  you with a completely new loan.  Are you sure that this is what happened? 

Do you have three mortgage agreements? The old one and two new ones? 

In 2006, not many people understood the value of trackers. And lenders didn't understand what a liability they were.  

If you surrendered your old mortgage and took out a completely new one, I doubt you have a case. 

If you still have the same mortgage, but they just fixed your rate for two years, you probably have a fair shot of getting the tracker back. 




metropolitan said:


> We met and the deal was a two year fixed on both. ( It was never discussed) I just presumed Id return to the tracker



This is the bit which is hard to understand.   It's possible that your memory isn't accurate. You probably were worried about the potential interest rate rises and asked for a fixed rate mortgage.   This does not sound like a bank trying to get you off your tracker. 

Brendan


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## metropolitan (29 Mar 2017)

Hi Brendan,

I have the paperwork for all three mortgages. The fixed rates were 4.3% for two years as opposed to 3.9% for the tracker. If he didnt want me off the tracker why didnt he just revert me to it after 2 years? If at that stage I didnt want it I could have switched to a variable or fixed rates myself. They are the only constant in mortgages. I have a Solicitor and we are going to try anyway.


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## Monbretia (30 Mar 2017)

If looked like they just went with the neatest option for financing the new home and your old one was changing to an investment property so maybe there was not the same options on that as home loans.   Did the term on the old one stay the same too?

If they had left original alone and you needed to get 70k equity from it they would probably have had to create a new second mortgage on it for that which may or may not have been the same remaining term as the original loan.   Other alternative would usually be to do a top up but the 70k might have been above their in house limit on top ups and  might have required a mortgage.   Also a top up could only run to the end of the original mortgage term.   These options would have seen you with 3 mortgages running, 3 repayments each month.

So it seems to me they looked at it and thought the most straightforward way to do this is two new loans, one on each property for the required amount, a bit tidier.   Although as to why there was not tracker rates available on both those we don't know, maybe there was an underwriting issue and you could borrow more on the fixed?   It was not uncommon for a while that stress testing on fixed rate mortgages was different to variable so applicants could borrow more.


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## twofor1 (30 Mar 2017)

metropolitan said:


> I have the paperwork for all three mortgages.



You say yourself, ‘_’We met and the deal was a two year fixed on both’’ _

If the deal was pay off your tracker and take two new fixed mortgages, reverting to SVR after two years, then I can’t see how you could have a case.

You were not compelled to take what was on offer, I don’t mean to be harsh but you chose to take what was on offer, whatever you presumed or thought is irrelevant.

I did something similar, Had a Danske SVR with a lot of equity, used that equity to take out a second SVR to buy an investment property, In 2005 I switched to their tracker for my PPR, but despite several efforts they would never let me switch the investment property to a tracker, always saying to me anyway that they did not offer trackers on investment properties.


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## metropolitan (30 Mar 2017)

You are probably right, Id say it has something to do with the investment. My brother has an investment property with Danske, and he did the exact same thing I did by using the first as equity. The only difference is they didnt end one mortgage and create two new ones. They kept the old one and also put the new one one a tracker. It happened circa 2005 so maybe things changed in the year.


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## twofor1 (30 Mar 2017)

metropolitan said:


> I bought the house off my Father in Oct 2005
> Home Loan 220k
> Home Value 400k
> Equity  180k
> ...



Looking at your figures again,

When you bought your first house in 2005, your LTV was 55%, so easily qualified for a Danske
LTV tracker mortgage.

In 2006 you moved, paying off the original mortgage and taking two new mortgages.

 The apartment is now your PPR but only has a LTV of 85%, so did not meet Danske’s minimum LTV of 80% to avail of a tracker mortgage, hence the fixed or standard variable offer.

The house is now your investment property with a LTV of 72%, but as it is now an investment property it does not qualify for a tracker with Danske, hence the fixed or standard variable offer.

Even apart from the fact that you accepted what was offered, it is apparent you did not meet the criteria in 2006 for a tracker on either property.

I think you and your solicitor should reconsider fighting this one.


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## metropolitan (30 Mar 2017)

We will. Thanks for that.


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## Duggie (25 Apr 2019)

Hi Metropolitan - did you ever pursue this without Danske or did you get anywhere with the CBI tracker mortgage examination?


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