# Write Down of BOI mortgage in exchange for tracker



## duffer100 (30 Sep 2014)

We bought an apartment in 2008 using a mortgage from BOI and it is still in negative equity.  We are fully up to date on payments.  We're looking to upsize now but if we sell or rent the apartment we lose the tracker or at best get put on BOI's tracker mover product (current tracker +1% for 5 years) .  
I've done the sums and our tracker is worth about €160k compared to being on variable and we're very reluctant to give up the tracker which is the one thing we have going for us.

So would the bank listen to us if we went in and offered to move onto variable straight away in exchange for a writedown (maybe €80k) on the mortgage?  They win because they get rid of a tracker and we win because we get rid of negative equity.
Obviously we wouldn't say that we are looking to move on soon, just that we are looking to pay off the mortgage quicker.

Apologies if this should have been posted elsewhere.


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## mcaul (30 Sep 2014)

I don't think banks are losing on trackers any more as market rates for money are very low and cheap ecb money is available.

Also I don't think anyone has had a straight write-down either.

Possibly they will allow rental without losing the tracker?


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## Brendan Burgess (30 Sep 2014)

Bank of Ireland is not losing money on trackers as their cost of funds is just about the average tracker rate. 

So they will not do any deal apart from allowing you to transfer your mortgage to a new property. 

I don't think you will lose your tracker if you rent the apartment? Does it say so in the mortgage deed? 

Brendan


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## duffer100 (1 Oct 2014)

Thanks for the responses.

The idea of renting out the property is a good solution for us but there are very conflicting views online about what the bank will do with our tracker rate.  In "Has anyone lost their tracker through renting out their home?" thread the concensus is that BOI will not change the rate and there are numerous posts on boards and other forums that say that the banks will change the rate.
(Unfortunately I can't post the links until I have 15 posts in this forum)

So I really need a definitive answer before going down this road because of how valuable the tracker is. I havn't had a chance to review the loan documents yet. Is there a definitive policy from BOI or do I need to contact them and find out?

One final question.  In renting out the apartment there are 2 possibilities; either we rent a property or we buy another property.  Do either of these possibilites influence the bank's treatment of our tracker?  (Assuming that we would get the new mortgage with a different bank.)


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## Monbretia (1 Oct 2014)

You need to check your loan offer and all the conditions on it, they are not all the same due to different products etc over the years so there can be no definitive policy on it, it will depend on your own loan offer.

Equally what you intend doing after renting is irrelevant to the bank and unlikely to have any impact on their decision which will be governed by the conditions of your loan.


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## outcast (14 Oct 2014)

I am negotiating with Bank of ireland to extend the term of a tracker loan on a buy to let property. I return for extended term, they want me to sign away tracker. I am in arrears for last four months but paying two thirds of due amount. The new proposal frm them is extend term and move to 2.1% (but no guarantees on future rate).
Extra interest cost over revised loan term (35 years) is over €100k. Can they unilaterally take away the tracker if I am in arrears of over 90 days.


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