# Trading up advice



## suegav77 (8 Nov 2013)

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## suegav77 (8 Nov 2013)

Hope this is the right place for this post... First time poster


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## Captain Z (8 Nov 2013)

Firstly get ICS to forecast your repayments based on the deal they offered you, at the current SVR rates. See how affordable this is. Then get a quote from other providers (with lower rates) for the new mortgage (assuming you pay off the existing one), the quote should include a forecast of repayments at current SVP rates. Ask them all to stress it for a +1% interest rate rise. Compare the outlay over time. 

See what is affordable now, and what may be affordable in the future, factoring in children, possible pay rises etc.


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## Mrs Vimes (8 Nov 2013)

I'm assuming you have a decent income, stable employment and a good credit rating or ICS would have said no.

Take their offer of keeping the tracker and in 5 years if ICS still have a higher SVR than others you can remortgage with someone else. Obviously a bit of a gamble that no-one will want your business in 5 years, but I reckon it's one worth taking. 5 years of really cheap tracker may well cancel out a long time of high SVR - as Captain Z said do the sums, but don't assume you'll be stuck with them forever.


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## newirishman (8 Nov 2013)

With regards to stress testing: I do strongly recommend stress testing interest rates up to 6.5% - even if it looks unlikely for the next few years. Just to make sure to get a proper perspective on potential risks.
Stress testing for +1% rise with current low rates might not be sufficient.


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## PadKiss (8 Nov 2013)

Hi suegav77
In relation to ICS and keeping the tracker you will not be keeping the tracker rate. It is a change in the terms and conditions and the forms associated with this change will clearly lay out that you are foregoing your tracker margin. Are you sure that ICS will allow all of your current mortgage to be moved to the new purchase as from a recent case what occurred was that the current home is sold and redeems the current mortgage and as the potential sale of the house is more than the mortgage outsatanding it will clear it fully. (If there was a left over negative equity amount then that amount would move to the 5 year deal you mention and standard variable thereafter. To do a proper cal on the costs how long is left on the current mortgage.) Then you are free to apply to whomever has the cheapest rates at present but this could be short term as whichever lender is cheapest now that may not be the case in say 5 years time. I would agree with Newirishman re the stress testing and indeed 7%  is worth looking at if for no other reason than to show what this mortgage could cost. If my reply is incorrect in relation to ICS and the  moving of your tracker mortgage please let me know as i would have issues with consistency of treatment of customers. Hope this helps you in some way
Padraic


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## suegav77 (8 Nov 2013)

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## PadKiss (8 Nov 2013)

Yes Suegav my understanding is that the new mortgage will not have a carry over of the old facility. Check with them, and put it as i have asked the question namely if we sell for 250k and we owe 200k can we move the current mortgage of 200k to the new address and use th eporceeds of the sale for the purchase and borrow the balance on the varialble rate and they should be able to tell you as this will be important to know in relation to your overall budgeting costs, but i dont believe this is allowed but i hope i am wrong Padraic


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## suegav77 (8 Nov 2013)

My understanding from the literature is that we redeem the current mortgage and they offer us a new trading up mortgage with our current mortgage balance at tracker rate plus 1.3% for 5 years and whatever extra we need at their SVR. Person I spoke with in ICS confirmed this to be the case.


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## suegav77 (8 Nov 2013)

I have the Ics doc they sent me by email but it's not allowing me to PM you with it?? Would you mind having a look at it to see what you get from it?


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## PadKiss (8 Nov 2013)

No Problem suegav email is info@kissanefs.com Talk Next week
P


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