# Selling a house on a tracker mortage



## Sunnyside12 (2 Aug 2019)

Hi
I have a house which is rented and on a BOI Tracker Mortgage and I got caught up in tracker mortgage scandal. Anyway, I am thinking of selling my house - not looking for another mortgage.
Will BOI do a deal on reducing the outstanding amount if I say I am going to sell the house? The mortgage is paid up as in it's never been arrears and the house is not in negative equity.


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## NoRegretsCoyote (2 Aug 2019)

What kind of deal are you thinking of?


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## David1234 (2 Aug 2019)

What is your rate? Whilst banks do not make as much on trackers at current rates v's variable and fixed rates they are still profitable for them so there is little chance in getting a "deal". No harm in asking all the same


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## notabene (2 Aug 2019)

Ask if they have a tracker mover product, usually they will let you move with it for a period, say ten years, but they will often add a % to it


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## Brendan Burgess (2 Aug 2019)

No. BoI will not do a deal with you. 

It's likely to be a very profitable investment if you have a tracker mortgage.   You would need very good reasons to sell it.

Brendan


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## Brendan Burgess (2 Aug 2019)

notabene said:


> Ask if they have a tracker mover product, usually they will let you move with it for a period, say ten years, but they will often add a % to it



Hi nb

He said he does not need a mortgage. 

Even if he did,  lenders will not allow BTL mortgages so it could be awkward to avail of the tracker mover.

Brendan


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## Sunnyside12 (3 Aug 2019)

Hi 
Thanks for your responses. I do not need another mortgage and am not looking to move the tracker mortgage. The rate is low since it was taken out over 10 years ago.  It is not a good investment because I am getting slated in tax and there's no protection with regards anti-social tenants who don't pay and destroy the property. I heard a rumour that the banks were keen to get rid of the non performing trackers and to incite people to sell they would offer to write off a small portion of the outstanding balance but I could be completely wrong.


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## Brendan Burgess (3 Aug 2019)

Sunnyside12 said:


> I could be completely wrong.



Yes. You are. 

Brendan


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## notabene (3 Aug 2019)

Brendan Burgess said:


> Hi nb
> 
> He said he does not need a mortgage.
> 
> ...


misreading on my part!


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## Sunny (6 Aug 2019)

Is the option of renting the property to the local authority open to you? Guranteed payment for up to 20 years including no vacancy costs. Tax incentives. No day to day maintenance costs and the local authority is responsible for tennents etc. Rent is a bit lower than open market but I know people who have done it and have no regrets. 

As Brendan says, shame to be settling tracker mortgage if you don't need to.


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## Sunnyside12 (21 Aug 2019)

Sunny said:


> Is the option of renting the property to the local authority open to you? Guranteed payment for up to 20 years including no vacancy costs. Tax incentives. No day to day maintenance costs and the local authority is responsible for tennents etc. Rent is a bit lower than open market but I know people who have done it and have no regrets.
> 
> As Brendan says, shame to be settling tracker mortgage if you don't need to.


Hi there,

Neighbours rented their house to the County Council on one of those schemes for 5 years. They indeed got the rent guaranteed but that was all they got. The Council put in very bad people who trashed the house, disrupted the lives of everyone on the road and  they could not get rid of them. The Guards were carting them off for the night every other weekend for anti-social behaviour. The onus to deal with the situation was on the landlord who was at his wits end and the house was wrecked. This is not a route I will be going down. The laws for this sort of behaviour are way to lax in this country. No protection for landlords and no tax incentives. Just happy to get out of the market! Thanks for your responses.


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## Sunny (21 Aug 2019)

I think it is different scheme or different local authority. This is a minimum of 10 years and the local authority is responsible for returning the property in good condition minus wear and tear. Its contractual obligation so if anyone had their house 'wrecked', they should take legal action against the council. Also the owner is not responsible for the tennents. The Lease is with the council. They are responsible for the tennents behaviour and dealing with issues etc. Like I say must be different scheme or different local authority.


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## Sunnyside12 (21 Aug 2019)

@Sunny. Must be a different scheme alright. Surprised a Council would agree to return the property as is and also deal with the tenents if there was trouble. Either way, I would not take the chance. Also the fact the house has maintenance bills to be paid, a hefty yearly tax bill, finding new tenents when the old ones move out etc. etc. does not make renting out the property profittable regardless that its on a tracker.


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## Blackrock1 (21 Aug 2019)

Sunnyside12 said:


> @Sunny. Must be a different scheme alright. Surprised a Council would agree to return the property as is and also deal with the tenents if there was trouble. Either way, I would not take the chance. Also the fact the house has maintenance bills to be paid, a hefty yearly tax bill, finding new tenents when the old ones move out etc. etc. does not make renting out the property profittable regardless that its on a tracker.



the scheme of renting to the local council on a long term basis mitigates a lot of your concerns as to holding the house being unprofitable i think we would need to see the figures, it most likely isnt.


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## Sunnyside12 (22 Aug 2019)

Happy with the replies I received. Thanks all


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## Annie51 (21 Sep 2019)

On a slightly different subject.  I have a property I am selling which is on a tracker mortgage.  Will the bank be looking for a break out fee for not completing the full term of the mortgage.  I think the tracker is + 1.5% .  The selling price of the property will more than cover the outstanding mortgage.  I will be talking to my bank next week but looking for your views here.


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## luckystar (21 Sep 2019)

No! Break out fee only applies to fixed rate mortgages


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## Annie51 (21 Sep 2019)

luckystar said:


> No! Break out fee only applies to fixed rate mortgages


Thanks for that information.


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