AIB announcement: allowing to move with tracker

Any update on this 'end of June' theory from anyone? All I have been able to get out of AIB so far is still the party line of "over the summer".
 
I asked about it at the AIB AGM this morning, and it's being launched on 1 July. Straight from the Chief Executive's mouth.

Brendan
 
I will be considering my options re this. Have AIB tracker mortgage
of 0.9 above ECB ie 1.15%

Current mortgage €427,000
Value of property: €230,000
Negative equity : €197,000

Cost of new property: €350,000
Deposit: €35,000
New mortgage: €315,000
Add neg equity: €197,000
Total mortgage: €512,000

Mortgage at tracker rate: €427,000
Mortgage at svr : €85,000

Am I correct with my figures. I thought just the neg equity ie 197,000 is at tracker rate!!!
Are AIB doing mortgage consultations for these mortgages yet!
 
You are upgrading from a home worth €230k to a home worth €350k so you need an additional €120k

You have €35k cash, so you will need an additional mortgage of €85k at SVR.

So your figures are correct.

I thought just the neg equity ie 197,000 is at tracker rate!!!
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I have seen others say this, but it's wrong. I think it comes from the idea that they are "transferring their negative equity". That is not the right way to look at it - you are transferring your tracker mortgage, and not just your NE.
 
Pinkpanter said:
Does this AIB offer make trading up now more affordable that waiting to pay down negative equity.
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It will always be cheaper to stay put and pay off a smaller mortgage than trading up and paying off an additional amount of borrowing.

But this is a great opportunity for people with the income who can afford to pay it, to trade up.

It will be much cheaper to trade up keeping your existing tracker than to sell your home and buy a house with a new mortgage, all at SVR
 
According to my local AIB last week....
1. They cannot work out numbers relating to trackers - "we need to have special unit call you"
2. For affordability they calculate as follows ; Couple needs 2100 disposable income per month. Each kid adds €250 to that total. (So 2A2K requires €2600 disposable income per month after all repayments)

Repayments are calculated according to following stress test criteria
1. Tracker repayment is stress tested at 5% regardless of current tracker rate!!
2. New mortgage is stress tested at 6% for term of new loan

Yes, I did challenge the lack of logic there but reply was - "those are the guidelines we have been given"

Hopefully helpful in calculating estimates....(all above of course assumes the branch person knows what they are talking about - and I was not convinced)
 
1. Tracker repayment is stress tested at 5% regardless of current tracker rate!!
2. New mortgage is stress tested at 6% for term of new loan
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Someone paying ECB + 0.85% now, will be paying 2% after they move. It's not at all unlikely that this could rise to 5%. ECB rates would have to rise only to 3.15% for this.

The current SVR is 4.5%. So 6% is well within sites.

The tracker rate will definitely follow the ECB rate up

The SVR might not be increased by the full amount.

Seems reasonable to me for what will be additional borrowing.
 
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