# Top up mortgage BOI - told me, wrongly,  that the rate would increase on my main mortgage.



## Snork Maiden (29 May 2019)

Hi

Was onto BOI today to look for a top up mortgage to build extension.   Initial consultation went well and was happy until I asked what the repayment would be on the top up.

I was told that the rate on my existing tracker mortgage with BOI would now increase by 1%.

So instead of the top up mortgage costing an additional 300 a month it would cost me 500 a month (300 on new loan and 200 extra per month on existing).

I’m not changing any terms on existing and when I questioned why my existing tracker is being changed the response was ‘with most lenders you would lose you tracker so having only a 1% increase is quite good’.

I understood that a top up was a separate loan with separate terms and was fully expecting to pay either the prevailing fixed or variable rate.  What I wasn’t expecting is any change to my existing tracker.   

I can’t find anything in BOI Site for top ups, but did find a rate change on a “tracker for mover” which attracts a 1% rate change, if you move house but keep tracker.  I’m not moving, just extending.

Has anyone any experience of this and any succes with pushing back and holding onto existing tracker rate.

Thanks for feedback.


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## luckystar (29 May 2019)

Wow I'm surprised. Like you presumed a top up mortgage would virtually be a separate mortgage with its own term and interest rate. Can't see how it would have a bearing on your existing tracker interest rate


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## Monbretia (29 May 2019)

That is odd!  How much are you borrowing?  There is usually a limit on the amount of top up you can do without having to do a full remortgage.   If it's not over that limit then I don't see why it isn't a separate loan leaving the original one exactly as it is.   But I don't know if this was just the way it was done and now the bank has changed it's policy and wants to do it a new way!

If it is within their right to change their policies for top ups to this sort of situation then that's a pain!


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## Bronte (29 May 2019)

When I got a top up it was an entirely separate loan for renovation purposes.  I think the bank are pulling a fast one to get you off your valuable tracker.


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## Snork Maiden (29 May 2019)

Bronte said:


> When I got a top up it was an entirely separate loan for renovation purposes.  I think the bank are pulling a fast one to get you off your valuable tracker.



That’s what I’m thinking.....the top up was quoted as a separate loan with a current rate, but I was then told my tracker would attract an extra 1% on top of my current tracker rate.

Current mortgage 337k 
Top up 60k
LTV less than 80%


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## Bronte (29 May 2019)

Were you informed of this in writing I wonder? If not ask them to confirm the reason for the increase in writing.


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## Snork Maiden (29 May 2019)

Bronte said:


> Were you informed of this in writing I wonder? If not ask them to confirm the reason for the increase in writing.


I rang back again at lunchtime.

Took talking to three people to get a definitive answer.....and got confirmation that there would be no change to existing tracker rate.

They wouldn’t put it in writing. It have name and number of person.

I was told to ring the new applications line again and start process again with a new person.

I understand it was a human error but it could have affected (1) my decision to top up mortgage or get a lower sum  via personal loan with higher rates or (2) switch banks and losing tracker all together!

Glad I got an answer in the end.  Thanks to all who replied.


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## Bronte (21 Jun 2019)

Well this is a good result. I’ve always found that the sales guys in mortgages seem to be hired for their ability to confuse.


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