WhatsTheStor
Registered User
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- 4
I assume that both the mortgages on Properties 1 and 2 are with Ulster bank?
Let's take it in steps to see if I understand it correctly.
Is this what you want Ulster Bank to do?
1) D buys out C with a variable rate mortgage from Ulster Bank
2) C keeps the cheap tracker of €200k
3) Ulster Bank to allow A & C to buy a property for €400k with €200k of a cheap tracker and €200k at variable rate.
I can't see any reason why Ulster Bank would allow this. They want to get rid of cheap trackers.
Suggestion 1
A & B keep Property 1 and their cheap tracker. It should be a very good investment.
C & D keep Property 2 - likewise a good investment.
A&C move into one property or the other as their family home.
or
A& C rent a family home.
Suggestion 2
Will UB allow the transfer of the mortgage to C?
If so, keep property 2 and tracker mortgage but it will be only in C's name.
It would be easier to try again for a different deal later.
Of course D loses out their cheap tracker and their ownership of the property.
What might happen after a few years of Suggestion 1 or 2.
A will build up a lot of equity in House 1.
A& C will have a lot of savings.
Ulster might let C take over the remaining mortgage at that stage and transfer it to a new house. A&C will have enough savings for the higher value.
Suggestion 3
C& D have a right to move the tracker to a new property.
Could C& D buy the house for €400k and keep the tracker and borrow €200k at SVR.
Then A& C could live in that property?
I think that these people need counseling because they have some very unhealthy obsessions.The issue here is that C is obsessed with getting rid of the apartment and is delighted that he think he has a way to do it. Also D is obsessed with keeping property 2. Hence, probably not an option.
...
A&C are obsessed with owning a family home.
The reality is A&C want a family home with kids asap.
Person D buys out property 2 from person C but keeps the tracker rather than a buy-to-let variable rate? Person D then offers person C some compensation for losing the tracker. Perhaps, 50% of the differential between the variable rate and tracker rate via a monthly payment? Would that work?
Where does B fit into all this?Property 1: Person A and person B purchased a property together. Tracker mortgage with KBC. Tiny negative equity of about 15,000 EUR. Payments up to date.
I think that these people need counseling because they have some very unhealthy obsessions.
Ulster Bank has to approve this. Would D meet the income requirements for the mortgage on their own? It's very difficult to persuade UB to do this, but they might.
Where does B fit into all this?
Does A live in Property 1 at present?
Would the following work?
Step 1 - A takes over the apartment and mortgage from B.
B now owns their home with a cheap tracker mortgage.
Step 2 (probably some time later...) A applies to move the mortgage from Property 1 to Property 3 with C on the mortgage.
"Would the following work?
Step 1 - A takes over the apartment and mortgage from B.
A now owns their home with a cheap tracker mortgage.
Step 2 (probably some time later...) A applies to move the mortgage from Property 1 to Property 3 with C on the mortgage."
The 2 sentences in step 1 seem to contradict each other!
As things currently stand, A and B want to retain property 1 as an investment and neither party wants to sell it.
KBC will not allow the tracker be kept if the debt is moved to another place.
Ulster Bank have already said that they can "take one person off the mortgage" and keep the tracker. So, D would be able to keep the apartment and get C off the mortgage.
A complex agreement then needs to be reached between C and D for D to compensate C for loss of the tracker. Is there any formula for this? or is it simply 50% of the differential in the buy-to-let rate versus the tracker rate?
This is probably the best option, all things considered, right?
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