# Two-pronged Tracker Query - help appreciated!



## SilverEd (14 Nov 2017)

Hi All,

Apologies if this has been posted before (I perused the forums and found similar but not quite.....)

I have a tracker mortgage with a friend on a house that is around 30k in 'positive' equity. He wants out and I want to keep it. Everything is very amicable. I'm happy for him to walk away and even pay him a few quid (probably 15k (half of the 30k))

I need to know a few things though....

1. Can I keep my tracker if he walks away? If not, what exact legal agreement needs to be signed by the two of us (I saw reference to one on other threads without specifying the agreement).

2. I recall seeing a Charlie Weston (I think) article saying you should look for 25% off your mortgage notional amount if you switch from a tracker to a variable. Well, I asked my mortgage provider and they said they don't give any incentive at all. We currently owe aprox. 200k, so, I'm wondering if it is possible for me to switch to another provider and ask for say, 30k off the notional if I switch to a variable (even a variable of 5% on a reduced notional would be manageable). Does anyone know if this is a viable option?

I know these are two very separate issues but any advice on either would be greatly appreciated!

thanks


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## RedOnion (14 Nov 2017)

Hi,

What lender are you currently with?

You mentioned 'manageable'. Would you meet the banks lending criteria on your own?

Red.


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## SilverEd (14 Nov 2017)

Hi, 

I'm with Kbc.

I am confident that I could meet their criteria on my own. Rent easily covers the mortgage and outstanding amount is less than 3 times my salary


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## Brendan Burgess (14 Nov 2017)

First of all KBC will not give you a discount for paying off the tracker mortgage early which is the equivalent of switching to variable. 

You can ask KBC, but I doubt if they would oblige. They might. 

The best think you can do is for you do a side agreement where you agree to pay the mortgage and he renounces his interest in the house. 

That does not change his relationship with KBC. He still owes them the money and if you default, his credit rating would be damaged. 

He will find it difficult to get a mortgage as his name is already on the mortgage. 

So if he wants to buy another house, then you will have to get KBC's agreement to let you take it over or else get another lender to give you a mortgage. 

Brendan


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## RedOnion (14 Nov 2017)

Plus, being a BTL the criteria is different. KBC will put you on to a much higher rate, and you'd need much more equity to switch to another lender.


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## SilverEd (14 Nov 2017)

Thanks Brendan.  That confirms what I suspected. He does want to buy another house so I think my best bet is to shop around for the largest 'haircut' another lender will offer me cos it looks like the only way I can get full ownership is by switching to fixed or variable 

Thanks again


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## RedOnion (14 Nov 2017)

SilverEd said:


> Thanks Brendan.  That confirms what I suspected. He does want to buy another house so I think my best bet is to shop around for the largest 'haircut' another lender will offer me cos it looks like the only way I can get full ownership is by switching to fixed or variable
> 
> Thanks again



No other lender will give you a haircut. Why would they?


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## SilverEd (14 Nov 2017)

I thought excellent credit history, new business and ultimately they'd be making money from me so I thought perhaps some lender would incentavise me to switch to them?


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## RedOnion (14 Nov 2017)

The best incentive I'm aware of for BTL is BOI's 2% cash back, but max LTV is 70%, and rates from 4.6% up.


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## SilverEd (14 Nov 2017)

Thanks Red

I think I will leave things as they are so. I have no plans to buy again (in Ireland anyway) so I'll let mortgage go down and value go up


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## peemac (14 Nov 2017)

If the other party wants out, then they should bear the brunt of costs.

Maybe best to talk to a broker or solicitor or accountant for what options there are and costs and implications for those options. 

If its in positive equity and income exceeding mortgage,  maybe just keep it as an investment with a business agreement between both parties with an annual discussion on options.


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