Moving home, changing mortgages, rookie questions

[telecaster]

We are looking to move house. We are 3 years in to our first active mortgage which is at variable rate. We bought the house for 250k with a 230k mortgage.

We now want to relocate and I'd just like some help with a few basic questions on the procedure.

When (if) our current house gets sold - presuming it sells for enough to cover the outstanding mortgage, are we then finished with that mortgage in entirity?

Do we have to go through the entire ''show me your grandparents over-due library tickets'' nonsense to get another mortgage, or will first active generally play ball with us seeing as we have never been late with any of the repayments on the current mortgage?

Is it worth putting in the hard yards to shop around for a new mortgage supplier at this stage?

Will the low variable rate we enjoy on the current mortgage be pulled from under our feet when we move to another property?

I'm going to meet the first active mortgage advisor soon, but I'd like to have a clearer idea of how that conversation is going to go before we meet, hence the questions....

Thanks for any help

 

[NorfBank]

If you clear the mortgage then you are finished with it.

If you had to show your grandparents over due library tickets first time around, you may need to root up your greatgrandparents tickets this time especially if you are switching lender.. Lending policy is a lot stricter than when you got the last mortgage. First Active are merging with Ulster Bank so your new mortgage application may be underwritten by Ulster Bank who might treat you as a new applicant. Check this with First Active.

First Active do not have the best rates in the market so yes it makes sense to shop around.

If it is in the lenders interest to put you on a new rate then you can be pretty sure that they will but only First Active can answer this.

 

[LDFerguson]

When (if) our current house gets sold - presuming it sells for enough to cover the outstanding mortgage, are we then finished with that mortgage in entirity?

Yes, unless it's an Offset Mortgage, which I believe has some facility to be transferred to a new property.

Do we have to go through the entire ''show me your grandparents over-due library tickets'' nonsense to get another mortgage, or will first active generally play ball with us seeing as we have never been late with any of the repayments on the current mortgage?

You will have to apply again for a new mortgage and prove your ability to repay it.

Is it worth putting in the hard yards to shop around for a new mortgage supplier at this stage?

Absolutely. Find out First Active's best offer and then compare it what else is out there. A saving of just 0.5% on your interest rate can save you almost €1,000 per year on a €200,000 mortgage.

Will the low variable rate we enjoy on the current mortgage be pulled from under our feet when we move to another property?

It's been a while since I heard anyone use "low rate" and "First Active" in the same sentence, as these days most of their mortgage rates are rubbish.

If you're on a tracker variable rate or other discount, try to convince your First Active mortgage advisor to allow you to carry it to your new mortgage. I'm not too optimistic about how successful you'll be, but it's worth a try.

Otherwise, if they only offer you their current market rates, do shop around.

 

[telecaster]

thanks folks, very helpful

 

[wbbs]

There is not a hope that you can carry the old rate to the new mortgage, you will be charged the new flexible variable rate of 3.65%. Unless you have an offset mtg in which case you are in luck as it can be transferred from one house to another with the same rate, presently 2.15%. There is no bargaining to be done as they are not really interested.