Is keeping Tracker when moving house possible ?

W

Warrenpaul

Registered User
Messages
15
Good morning

I was wondering if it was possible to retain your tracker when you sell your current home and buy a new property. I will give you a brief run down of an example situation.

Value of current house €450,000
Outstanding mortgage €185,000 18 years left
Equity €265,000
Purchase new property €350,000

New mortgage of €85,000 keeping tracker at 1.3%
Would be € 1,227.83 per month for 6 years to be mortgage free.

Too good to be true i am thinking ...

Any advise would be most welcome, i have contacted the bank with this exact same question but as you know i might as well have posted it into the bin outside.

Regards.
 
BoI add 1% to the rate for 5 years (still available). It then reverts to standard rates.
 
Ok Great, If my proposed plan was to be put in motion i would pay 2.3 for 5 years and a higher rate of possibly 3% for the remaining year.
That wouldn't be the worst.

Thanks for the help @RedOnion and @odyssey06.
 
Warrenpaul said:
Outstanding mortgage €185,000 18 years left


Purchase new property €350,000

New mortgage of €85,000 keeping tracker at 1.3%
Click to expand...

I suggest that you keep the entire mortgage of €185k@ 2.3% over 18 years, at least initially.

Then when you are settled into the house and have done what you want in terms of decoration etc., pay down the mortgage to the level you want.

Or you might want to keep the money for something else. For example, you might want to lend your sister the money as a deposit on a house or to buy a car. They won't be able to borrow at 2.3%.

Keep the term at 18 years which will keep your official payment lower. But you can overpay at any time without penalty.

Brendan
 
Solid advise @Brendan Burgess. I suppose i am a very debt averse person and have my heart set on being mortgage free before im 40, 6 years to go so perhaps i should be less concerned about that and more concerned about having the most valuable asset at the end of the term.
What would be your advise on setting up a monthly over payment of €250 taking 4 years off the term to start, leaving 14 years remaining. It makes sense to focus on paying off the current asset (house) valued at €450k instead of down sizing to a less valuable property perhaps.
Also do you know if after 2 years a change in circumstances occurred and i wished to cancel the over payment would that be an issue from the banks point of view ? cant see why it would be but you never know. Any help greatly accepted..
 
The main point is that you can go for a long term loan initially and then when the move is completed, you can pay the capital off. I am not suggesting that you don't pay off the loan within 6 years, if that is what you want to do.

Warrenpaul said:
Also do you know if after 2 years a change in circumstances occurred and i wished to cancel the over payment would that be an issue from the banks point of view ?
Click to expand...

That is the whole point I was making. If the extra €250 is voluntary, then you can stop it when you want.

Brendan
 
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