Mortgage Application with existing Split Mortgage

I

Introuble83

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I currently have a split mortgage with AIB . 45k on the split , 185k on the active part . Property value 280k so I’ve about 50k equity . I am thinking of moving houses and purchasing a new property valued at around 280k , so similar to my own .

my query is will AIB entertain a mortgage for me . I cover off on the LTV and 3.5 salary rules . I understand the split will be gone if I move. My credit rating has blemishes but no other debts outstanding. anyone here been able to move whilst previously or currently having a split mortgage?
 

Key Post - If you have a split mortgage which you no longer need...

I posted this thread in relation to borrowers with ptsb split mortgages who might not want their loans sold to a vulture fund. If you have a ptsb split mortgage, which you no longer need... But the same principles apply to borrowers with split mortgages from other lenders. If you have a...
www.askaboutmoney.com

If you have €45k on a split mortgage, it's "saving" you about €1,200 a year in interest or €400 if you are on a tracker.

And it's probably going to stop you moving house for 5 years after you clear the split.

And AIB generously tops up any cash paid off the warehouse. If you pay €10,000 off it, they will write off another €2,500 ( Or if it's less than 5 years old, they will write off €4,200 instead of €2,500)

AIB - If you have a split mortgage and you are in the AIB Prevailing Rate cohort...

You should give serious consideration to paying the interest refund against the warehouse. AIB is setting part of the write down against the warehouse - e.g. €10,000 If the split mortgage is less than 5 years old, AIB pays a 42% bonus on any money paid off the warehouse. So they are then...
www.askaboutmoney.com

If you had cash, it's a terrible pity that you did not get rid of the warehouse earlier.

Brendan
 
Brendan Burgess said:

Key Post - If you have a split mortgage which you no longer need...

I posted this thread in relation to borrowers with ptsb split mortgages who might not want their loans sold to a vulture fund. If you have a ptsb split mortgage, which you no longer need... But the same principles apply to borrowers with split mortgages from other lenders. If you have a...
www.askaboutmoney.com

If you have €45k on a split mortgage, it's "saving" you about €1,200 a year in interest or €400 if you are on a tracker.

And it's probably going to stop you moving house for 5 years after you clear the split.

And AIB generously tops up any cash paid off the warehouse. If you pay €10,000 off it, they will write off another €2,500 ( Or if it's less than 5 years old, they will write off €4,200 instead of €2,500)

AIB - If you have a split mortgage and you are in the AIB Prevailing Rate cohort...

You should give serious consideration to paying the interest refund against the warehouse. AIB is setting part of the write down against the warehouse - e.g. €10,000 If the split mortgage is less than 5 years old, AIB pays a 42% bonus on any money paid off the warehouse. So they are then...
www.askaboutmoney.com

If you had cash, it's a terrible pity that you did not get rid of the warehouse earlier.

Brendan
Click to expand...
It’s a unusual position to be in . It makes more sense to stay put and leave the warehouse . I understand this restricts my borrowing capability.
 
Introuble83 said:
It’s a unusual position to be in . It makes more sense to stay put and leave the warehouse . I understand this restricts my borrowing capability.
Click to expand...
Thanks Brendan . I used any available cash recently to settle a personal loan . I may have been better to clear the warehouse. Too late now though
 
Introuble83 said:
I used any available cash recently to settle a personal loan . I may have been better to clear the warehouse. Too late now though
Click to expand...
I wouldn't stress too much about what you did if the following thread relates to your loan:

Loan settlement outstanding

I settled a historic AIB loan through there collection agent Interim Justicia on 15/9/20 . They email to confirm the account is now closed . I have received no confirmation from AIB that the residual value has been written off and the loan balance is still outstanding on my online banking . I...
askaboutmoney.com

If you've had a residual balance of a loan written off, you'll be waiting a few years before you can get a mortgage one way or another. I'd start working out what's the best path now to be in the best position in 2 years time.
 
RedOnion said:
I wouldn't stress too much about what you did if the following thread relates to your loan:

Loan settlement outstanding

I settled a historic AIB loan through there collection agent Interim Justicia on 15/9/20 . They email to confirm the account is now closed . I have received no confirmation from AIB that the residual value has been written off and the loan balance is still outstanding on my online banking . I...
askaboutmoney.com

If you've had a residual balance of a loan written off, you'll be waiting a few years before you can get a mortgage one way or another. I'd start working out what's the best path now to be in the best position in 2 years time.
Click to expand...
Thank you for the comments . Yes I am thinking should I go ahead and ask AIB to move the split back to the active part . Obviously my mortgage will increase and I’ll pay more interest but it would mean a clean slate
 
Spoke to AIB. Split loans appear on your record as moratoriums as opposed to bad debts . It may or may not infringe on future borrowings. Any payments received over 1k are awarded an additional 20%. I will gradually pay it down . Makes no sense to move the split back to the active mortgage part and pay additional interest and loose out on the 20% reward .
 
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