# Downsizing on an Ulster Bank  tracker



## mossfitzg1 (8 Sep 2014)

Hi, looking for advice before approaching bank so will keep it brief

I have a tracker mortage with UB, 290 k left over next 20 years

Home in Dublin worth approx 250000

Im looking to move home to parents house with wife and kids so need to build extension / Granny Flat at a cost of say 100 k. Parents House would transfer to me.

Basically wondering can I sell Dublin house , hand over 150 of this to bank but  keep 100 k at tracker rate to build Granny Flat.

That would leave mortage at 140 k rather than 290 k so surely this would benefeit bank too seeing as they are loosing money on trackers ?

Just hoping someone could advise before I open the can of worms with the bank.

Thanks
M


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## Brendan Burgess (8 Sep 2014)

How much is your parent's house worth? 

If your income allows it, UB will allow you to buy the house from your parents for €100k. 

Your parents can then build the granny flat or lend you the money to build it. 

For the first 5 years, you will pay your current rate +1%. After that , you will pay the  SVR. 

As you have a cheap tracker, would you consider renting the house in Dublin? The rent will cover the interest in full and probably most of the repayments. 

You may be able to get a mortgage of €100k on your parents' home, depending on your income.


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## mossfitzg1 (8 Sep 2014)

Thanks for reply Brendan, just to make sure I understand you,

Parents house is probably worth around 250000. Are you suggesting UB would allow me  sell house in Dublin and then use 100 k of proceeds to purchase my parents home ?

My outstanding mortage of 140 k would then be Current Rate + 1% for 5 yrs and then SVR

Ta


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## Brendan Burgess (8 Sep 2014)

That  is it exactly.

UB would end up with a mortgage of €140k on a home worth €250k. 

If you were having difficulty meeting your repayments, they would probably encourage you trade down and would leave you with your cheap tracker at the current rate for the full remaining term. 

Brendan


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