Have tracker - should I trade up?

Hi all,

Myself and family have outgrown our current house and ideally we need to trade up. We are in a quite fortunate position, well after 15 years of very hard work, we are in a fortunate position!

We are currently enjoying a great tracker rate with our home. ECB + .8%
We do have Negative equity, I would think we are about 80k in NE.

We currently repay €1500 ( about €100 overpayment ) a month on our mortgage and save €1,000 a month. So we have room to increase our monthly outgoings to the bank, AIB at the moment.
We have access to €100k in savings.

I wonder what is the smartest way to proceed:

My issue is that, I ( like the rest of the country i'm sure), don't really want to move to a new house and the increased interest rate we'd have to pay cripple us going forward.

Have people any views as to bank doing deals, so is any of this possible:
I could use savings to buy out my tracker for a reduced amount?
Bank let me bring the tracker with me or some portion.
Will the bank even tolerate a new mortgage to us, given the fact we are in NE?


We are not in an immediate rush and certainyl coudl afford to wait 6-12 months if we had to,...

Thanks for any views / debate,

Have people any views as to bank doing deals, so is any of this possible:
I could use savings to buy out my tracker for a reduced amount?
Bank let me bring the tracker with me or some portion.

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AIB is not doing any deals at present.
They are not allowing the transfer of trackers to new homes at present.

However, there is talk of these loans being transferred out of AIB to the IBRC. I f that happens, they will be transferred at a discount of probably around 20%. I suspect that IBRC or AIB might do a deal in advance of such a transfer.

So you should hold onto your savings for the moment and hold onto your cheap tracker.

Brendan

Thanks Brendan,. I'm inclined to agree with you.
My wife on the other hand!!!

Brendan, is there any idea when the transfer will take place and when the deals are likely to transpire? I thought that was happening in June. For someone waiting to take advantage of this (probably greedily from other peoples perspective) every month that passes is a payment thats missing out on the discount.

I would also love this deal to happen asap.

I suspect but that any deals would have lots of conditions attached like not being able to sell your house for a specific period of time etc . Which wouldn't suit me as I have started the process of selling and buying .

Billy Baltic said:

Brendan, is there any idea when the transfer will take place and when the deals are likely to transpire? I thought that was happening in June. For someone waiting to take advantage of this (probably greedily from other peoples perspective) every month that passes is a payment thats missing out on the discount.

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Hi Billy

This may or may not happen.

They may transfer the trackers to IBRC and even then, IBRC might not do deals.

There is nothing greedy at all in this, from anyone's perspective. If AIB has a loan on a cheap tracker, it is in their interest to recognise the loss up front by writing it down to its true value and by giving a discount either for early repayment or for repricing.

There could be conditions attached, but PTSB didn't impose any conditions as far as I remember. If one was told that the dicount was clawed back if they sold within 3 years, it might be worth lettiing the house for three years and then selling it.

Brendan

Brendan - if its a BOI mortgage (i.e. ICS), do you anticipate any deals going forward there, asI'm in a similar position with the original poster, unsure if bank will help us at all, if we want to take a trade up mortgage?

I don't think that BoI would do such deals. As far as I know, they are not planning to sell their trackers to the IBRC.

They might do a deal, but the incentive to do one, would be a lot less.

This could be a problem for me too, in buying out my mortgage:

Brendan Burgess said:

If one was told that the dicount was clawed back if they sold within 3 years, it might be worth lettiing the house for three years and then selling it.

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But I don't see, and I'm open to sugggestions, how the bank could claw back any money if they've handed over the deeds? Would you anticipate a 'buy-out without deeds' arrangement and then they cough up the deeds after the 3-years?

I have a thread with my issue which is no. 171373. The site won't let me link it as I haven't posted 15 times yet.