Trading up from Danske Tracker

M

Morkin

Registered User
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Hi there,

have read a lot of other threads but see nothing current on Danske so thought I'd post.

We're looking to trade up to a larger house due to space needs of 3 boys under 9. We have a .5% tracker with Danske. We're ~ 20k in negative equity.
So I just got off phone with Pepper (handling the day to day but debt still with Danske) and there's no new business being done by Danske (knew that but wanted confirmation) and they are offering no write-downs or deals. Only option is pay up the lot.

I've looked at the likes of the PTSB Tracker Mover but they all seem to be for mortgages with the same source lender (a living one). We could just about cover the negative equity but would then have no deposit or move for fees etc. (as well as the woeful SVR products out there if we were even offered a mortgage).

Suggestions or info. appreciated.

Cheers,

M.
 
You won't be able to transfer your tracker, as it's a Danske mortgage.

Danske's mortgage contract is much clearer than the others in that if you let out the house, they can take your tracker.

Brendan
 
I feel for you Morkin. We are sacrificing our great Danske tracker to move house. I only wish they had stayed in the market & allowed mortgage portability.

Could you over pay the mortgage for a while & hope prices in your area come up, reducing your NE?

Or save hard for a new deposit & rent your current house? I see what Brendan says above, but Danske are pretty much out of the Irish market - would they actually know if you let it out?

Any chance you could remodel/extend your current house - keeping the tracker advantage?
 
Hello,

A Tracker Mortgage is worth a lot of money to a Borrower, over the duration of the loan. As such, I would be extremely slow to ever surrender it, unless there was a significant financial incentive coming from Danske Bank.

Butter's question about the possibility of remodeling / extending the current house is definitely the way to go in my view ... build out or build up if you need more space.
 
Thanks folks. We're happy enough with the house but its in an estate and want to move to a larger site (as was the original pre-bust plan but there was little to nothing available). We're in a provincial town. I really do know the value of the tracker but don't want to wait to move when the kids are in their twenties. Higher repayments will be manageable even with a 3% stress test its just the damn negative equity and the impotence one feels with a mortgage from a dead (in Irish terms) bank.

Is there any chance of getting a trading up mortgage (and selling current house) at the current SVR? Are any banks even lending to the likes of us?
 
No, there is no chance you would get a mortgage.

You have enough cash to pay off the negative equity, but no deposit. No one will give you a 100% mortgage.

Morkin said:
We're looking to trade up to a larger house due to space needs of 3 boys under 9.
Click to expand...

Morkin said:
I really do know the value of the tracker but don't want to wait to move when the kids are in their twenties.
Click to expand...

I am not sure that you fully appreciate the value of the tracker. You don't give the figures, but most of your monthly repayment is actually paying down capital. You will have the €20k negative equity paid off in no time at all.

If you switch to a bigger loan at SVR, most of your repayment will be interest.

You should set yourself a target of moving in 5 years. You should have built up a bit of equity by then. You will also be building up your savings. And you never know, it's just possible that Danske might offer their customers a deal to pay their trackers off early. It's also possible that Danske may sell their mortgage to a live bank who would offer you an opportunity to move your mortgage.

Hang on in there.

Brendan
 
I understand what you're saying. We've had the same debate about giving up our Danske tracker & ultimately decided we wanted to move more than we wanted to stay where we are. We got ten good years out of the tracker but don't want it to prevent us moving on - in another ten years our kids could well be moved out & I don't want to look back & regret not moving.

Who do you bank with? Have you gone to speak to a mortgage advisor there? Or tried a broker who may have an idea of which bank might look at your case?
 
Brendan's advice is good. We were lucky to have equity in the house. A few years of paying down as much as you can of your current mortgage will have you in a much better position. We've spent two years debating the pros & cons of moving - it goes fast enough. In two years you'll be well out of negative equity.
 
Thanks guys - things do look like they are moving in the right direction (or at least not sliding). So even in 12 months with savings and most of the payments reducing capital and a bit of luck on sale price we could be in a position to move. Will have a chat with local banks too - I'm AIB and the other main guys are in town too.

One final question. I'f I get into a position of break-even or positive equity wouldn't we still need 20% deposit? And I thought there was something in the new guidelines that negative equity mortgage holders didn't need the 20%. Guidelines only I suppose and as Brendan said the bank would prob just tell us go away/sit tight. Will ask anyhow.

Cheers again, hopefully the boys won't have beards by the time we have a big enough garden for a kick about :cool:

M.
 
If you could cover the €20000 NE then presumably you have this in savings now?
Getting out of NE entirely may not be the ideal answer as it's likely you will need a 20% deposit.

What kind of cost will the next house come in at?

Reducing your NE to closer to break-even but not quite break-even may be your best bet & apply for a NE mortgage - thus escaping the new LTV restrictions. But I don't know if a different bank will give you a NE mortgage from a Danske mortgage.

Realistically if you save hard for a couple of years how much could you reduce your mortgage by & how much would you have in savings? Enough to get out of NE even if prices stay static & add to your deposit? Most of your Danske payments are probably coming off the capital.
 
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