LTV Tracker and Redemption Figure

Currently considering trading up! About to begin process of looking for redemption figure. Currently on ECB +0.55% with NIB.However clause in mortgage agreement says ifLTV increases by 80% then bank reserve right to convert to variable rate. Given that we are bordering on negative equity, am worried that a request for redemption figure may trigger bank to seek house valuation, screw us over and invoke clause. Anyone any information on this? Anyone any experience on redemption figures with NIB to get one off a tracker?

Hi acon

Why do you need a redemption figure?

Did you not get a mortgage statement at the end of the year? That will tell you how much you owe.

You don't need the actual redemption figure until your solicitor is ready to pay off the mortgage. That will be after the sale contract has been signed by both parties, so the fact that you have a tracker is of little relevance.

Brendan

We are looking for a redemption figure as we want see what the difference is between the redemption figure and an approximate sale price for the house. We have heard from a few sources that banks want offload trackers and may offer a resonable figure on negotiation. The difference between both of these figures may be enough for a deposit on a new home.

A "redemption figure" usually means the balance on an account which the solicitor must pay to redeem the mortgage.

If you ask NIB for a redemption figure, they will just tell you the balance on the account.

National Irish Bank is not offering such deals at the moment and are unlikely to do so in the future. Of course, that doesn't stop you from asking them, "If I sell my house and pay off the cheap tracker early,how much will you accept?" . I doubt if they would put you on a higher rate as a result, but if it's in the contract, it's a risk.

Thanks for the prompt respose Brendan. Maybe redemption figure was the wrong term to use. When we met an ulster bank rep. about a new mortgage he also used that term when describing how to negotiate a figure to settle the mortgage with NIB. He seemed very sure that NIB would gladly negotiate an amount to enable them get rid of a tracker. Our problem is coming up with a deposit, our hope is that we could get this from the difference between a sale price and the amount we would have to pay NIB. UBL at least seem to have no issue in giving us a new variable rate mortgage.

acon said:

When we met an ulster bank rep. about a new mortgage he also used that term when describing how to negotiate a figure to settle the mortgage with NIB. He seemed very sure that NIB would gladly negotiate an amount to enable them get rid of a tracker.

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I've been watching this with great interest (as I too have an NIB mortgage @ ECB+0.59%). A few others on AAM have asked and got a clear "no" in response. I have also ran this past them -and the answer was the same. The hope would be that they might implement a policy change in this regard. It's not going to hurt you to ask them. Please post back the outcome on AAM. ;-)

They have made changes to current accounts recently - and this week, announced that they were going to . Maybe they will leave the market? complete speculation - and bad for the irish banking sector if they did. Notwithstanding that, maybe if that did transpire (again, speculation) they may change their policy in relation to redemption of tracker mortgages....