# Equity release/mortgage extension at tracker rate -possible?



## fat bloke (31 Mar 2016)

Hi there.

First time poster here, be gentle .

We're looking to build an extension to our house and we have a tracker mortgage with BOI. They offered us an equity release based loan option and the rates are around 4-5% or something. I just wondered if they were obliged at all, or if it was possible to acquire the money through a extending the mortgage or something like that and keep the tracker rate?

I have anecdotal evidence of people moving house and keeping their tracker rates, so I wondered how this was done, and if we could do something similar. The amount of money involved is about 70-90 thousand euro.


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## Monbretia (31 Mar 2016)

No, they don't have to offer you additional borrowing at your tracker rate.  It's basically a new loan and subject to present day rates and rules.

Extending the term of the mortgage won't give you a lump sum of money to do an extension, would reduce the payments monthly.  However they are unlikely to do that either on a tracker rate.


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## todo (31 Mar 2016)

Be very carful, the tracker rate is very valuable to you. Maybe the credit union could lend it.


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## Monbretia (31 Mar 2016)

What they are offering is the usual in this scenario, a top up mortgage but at present rates, it should have no effect on your existing tracker unless you decide to refinance the old and new loans into one, this would not be a good plan as it would then all be at new rates.  Keep them separate.


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## notabene (31 Mar 2016)

if you get a top up - they are often done as a second mortgage which would be an entirely separate loan- be careful with your tracker - extremely valuable and very easy to lose.


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