# Moving mortgage to another house - lose tracker?



## Guelder (9 Jul 2011)

Hi guys!

Posting on behalf of a family member..

Person owns 2 homes on the same street. One is their main residence, the other is rented.

They decided to sell their rented home which is currently on a tracker mortgage. 

The house is sale agreed and contracts should be signed and monies exchanged within the next month.

They have no mortgage on their main residence. 

They would like to transfer the tracker mortgage on the home they are selling to  their current main residence. It's a small mortgage - less than 100k left.

They are wondering if they transfer the mortgage will they lose out on their tracker? AFAIK they are with Permanent TSB.

They would not be looking to top up the mortgage nor extend it - they would be paying the same amount monthly, just on a different house, they would not be altering any other terms.

They reckon that if they were to lose their tracker that their mortgage repayments would shoot up over E200 per month.

Is it possible to keep the tracker in this instance? 

Appreciate any replies, as I honestly haven't got a clue in this regard.


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## wbbs (9 Jul 2011)

How would their payments go up, surely the mortgage will be cleared from the sale proceeds of the house?

It is usually not possible to transfer a mortgage as the mortgage will have to be cleared to enable the sale to go ahead.  The solicitor will have to give an undertaking to the bank to clear the mortgage from sale proceeds in order to get the deeds.

What they are really looking for is an equity release on their residence, unlikely in todays banking climate, would be subject to underwriting criteria and would be at the banks existing rate.  But what would the purpose of it be even if it could be done as their will no longer be a need for the mortgage if the house is gone or were they intending using the sale proceeds for something else?


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## niceoneted (9 Jul 2011)

Can you confirm if the sale price of the house is greater than the outstanding balance on the mortgage. If it is not have they been in consultation with the bank in relation to the short fall. If not they must do this immediately as as wbbs says the deeds will not be released until the mortgage is cleared.


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## drunat (9 Jul 2011)

no you will not be able to transfer existing tracker to the other house. banks are loosing on those tracker mortgages and they try to get rid of them which means no new trackers or no replacements. a  new mortgage on the house will be at the prevailing rates.


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## Guelder (9 Jul 2011)

Wbbs; their payments would go up as if they lost their tracker rate they currently have, and were put on a variable they would be paying a higher rate - they have estimated this to be E200 more per month, possibly with more hikes in the coming months.

niceoneted; Yes, the house is indeed worth more than the mortgage, so there is no problem there. Thankfully they are not in negative equity.

drunat; thanks for that. They were hoping they could hang onto it and merely change the house number on the mortgage - the two houses - the one with the mortgage and one without - are identical, both on the same street - both worth the same.

So it looks like they'll have to pay off their mortgage in full so when the sale is at completion, as it wouldn't make any sense for them to be paying an additional E200+ per month on the mortgage than what they're currently paying if they lose the tracker.

I think they were hoping on holding out paying off the mortgage in case PTSB announced they were going to be offering a better deal than their current offer of 10% to those who pay a lump sum off on their mortgage.

Do you think if they wrote to the bank with a cash offer they could get a better deal than the 10% if the tracker is indeed losing the bank money?


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## wbbs (9 Jul 2011)

Still kinda confused as to how the mortgage would increase by 200 p.m. if they lose the tracker, they wont lose the tracker unless they sell the house, if they sell the house the mortgage must be paid off.   There is no way the payments can increase as they cannot keep the mortgage either way.   Do you mean they wanted to transfer the mortgage to the other house and keep all the money from the sale?


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## huskerdu (10 Jul 2011)

wbbs said:


> Still kinda confused as to how the mortgage would increase by 200 p.m. if they lose the tracker, they wont lose the tracker unless they sell the house, if they sell the house the mortgage must be paid off.   There is no way the payments can increase as they cannot keep the mortgage either way.   Do you mean they wanted to transfer the mortgage to the other house and keep all the money from the sale?



Yes, from the OP, it seems that they wanted to sell house 2 and keep the tracker mortgage using house 2 as collateral.

As has been pointed out already, the mortgage is attached to the house and cannot transferred to another house, it must be paid off when the house is sold.


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## csirl (11 Jul 2011)

As both houses are identical and on the same street, it would make more sense for them to live in the house with the tracker and sell the other one.


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## Guelder (11 Jul 2011)

Thanks for the information all, have duly passed it on.

With regards to living in the other house and keeping the tracker - unfortunately this isn't possible, as they have a buyer for this house and contracts are due to be signed any day now.


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