Tracker on investment property with KBC - buying a PPR

B

bbari1

Registered User
Messages
104
My 1st post, so apologies in advance for asking stupid questions.

I am moving house, 1st mortgage is with KBC and its on tracker.

New house worth €300K and I am borrowing €230K (76%) so that I avail the better rate by going under 80%.

Till i read this very useful post, I thought KBC was my best option as they offer 3.45% but apparently they are not as they don't pass on the benefit of the reductions in int. rates in future ?

Can't avail the best rate with UB as min borrowing should be €250K but when the house worth €300K, 80% would be €240K so I guess UB is crossed off the list?

in this case, is AIB the best option? 3.55%, approval lasts 6 months. if they reduce int rate in future, will that apply to me automatically ? Lets say if i pay lump sum to bring LTV down to 50% OR the house value increase will they put me on to the lower rate ?

I will sincerely appreciate your efforts in explaining....
 
Last edited by a moderator:
You've obviously done your home work!:)

I know it's rude to answer a question with a question, but are you planning on selling or retaining your current home?

Have you got positive equity in your current home? KBC get a bad press around here but they do offer a tracker mover product that might be appropriate depending on your circumstances.

Do you have any flexibility (or do you anticipate having some flexibility in the near future) about how much you have to borrow (or how much borrowing you need to retain) on your new home?
 
Last edited by a moderator:
Thank you for your response.


Not rude at all - keeping the apartment, its rented out at the moment and its not costing me anything. I am living in rented house for the past 3 years.

I owe €150K and the MV of the apartment is €170K. Bought for €270K!

What is Tracker Mover ? I was on the phone with KBC for over half an hour this evening and they didn't mention this as one of the options

Yes, there's flexibility, I can pay a bit more if thats make any significant difference.

Thank you again.
 
Last edited by a moderator:
If the apartment was your home at one stage, then you can sell the apartment and move the tracker to the new home and you will pay an additional 1.25%. Depending on the tracker margin you are paying, this should still be good value.
Analysis of KBC tracker mover mortgage

Here are the options:

upload_2015-10-31_9-32-47.png


Given that you will have a very cheap mortgage and seem to have good affordability, then you might consider buying a bigger house.
 
Thank you Brendan.
I would like to hold on the apartment (ex home) and buy a new house.
Who would be the best lender in this case?
 
You must log in or register to reply here.
Back
Top