One tracker two properties

D

diceyreilly

Registered User
Messages
40
FYI I have a performing tracker .85 +ECB with UB. Two properties secured on a balance outstanding 170K
Property A AMV 120k
Property B AMV 350k.
I have been trying to release Property A 120k from tracker mortgage leaving a LTV 48.6%. I have had confirmation verbally at different times over past 5 years that could be done while retaining my favourable tracker rate. However when I tried to action this I have been stonewalled by Ulster Bank HO who refuse to honour this and are insisting that the tracker be cleared and a new mortgage application for the 170k LTV 48.5% be transferred to current commercial rate 4.7%.
UB advertise that existing tracker mortgages (residential) can be switched if customer is moving and new rate would be ECB + 2 however I am not being offered this as it is commercial. I would be willing to do this.
The repayments would change from1832 per mth to 2127 total interest increasing from 2127e to 34287e an extra cost of 28381e over the remaining 8 years. I have exhausted my efforts i think trying to have UB honour their verbal commitments any advice on what I should do would be appreciated. I have never defaulted on the mortgage in 20 years. Thanks.
 
That is one of the most confusing posts I have read in a while

How can you have a single mortgage on two properties?

A verbal commitment isn't worth the paper it is written on!
 
It is a bit confusing ok.

1) It strikes me as unusual to have a mortgage for a home cross secured on another property.
2) Are either of these properties your current home or are they investment properties?
3)Are either of these properties your current home or are they investment properties?
4) Why do you want to release Property A from the mortgage?
5) Overall, what are you actually trying to achieve?
 
Not at all uncommon to have one mortgage secured against two properties or even more, might have been one original property and then cross secured when second was purchased but one mortgage done for the lot.

Bank have you over a barrell, they want maximum security for their lending and keeping both properties gives them that. In different times you could probably have got them to release one property based on a valuation of the second property being sufficient for the mortgage but they have seen their opportunity to get you off a tracker!

Presume you want to sell one property, they might agree to you further reducing the remaining mortgage with some of proceeds to release the one you want to sell. If you are not selling then I can't think of a solution to the problem, bank holds all the cards here. Could appeal to HO and whoever is likely in charge based on LTV on remaining property but equally you might get nowhere!
 
Well true Brendan, he does have the upper hand with the rate until unfortunately he needs to change the barrel as you say!
 
Monbretia said:
Not at all uncommon to have one mortgage secured against two properties
Click to expand...

Hi Monbretia

That is quite common for investment properties.

Is it common for a family home?

I suppose if I remortgage my home to buy an investment property, it would happen ok.

Brendan
 
diceyreilly said:
I have exhausted my efforts i think trying to have UB honour their verbal commitments any advice on what I should do would be appreciated.
Click to expand...

In my experience Ulster Bank staff will say anything at all and then deny it.

If it's not in writing don't believe a word of it.

Even if it is in writing they may well deny it. In my case they lied straight out to the Ombudsman that they had not removed my tracker mortgage even though I had bank statements saying the opposite (they had reinstated the rate by then).

Now that they are pulling out of Ireland and all losing their jobs anyway they probably care even less about consequences.

...... but I'm not bitter
 
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