Ulster Bank Tracker Switch Query

[dub_house_20]

Hi

I would like any advice on the following.

I am looking to buy a house in Dublin for ~740K. I am looking to borrow ~380K. I have a apartment with Ulster Bank, which is in negative equity of ~25K (205K mortgage). The Ulster Bank mortgage is tracker ECB +0.7.

I estimate if I rented the apartment I would need to contribute ~375 euro per month over the rent after tax to pay the mortgage. There is ~21 years left on the mortgage.

I am wondering is it better to keep the apartment or sell and transfer the tracker to the new house.

 

[ryaner]

If UB will let you transfer the tracker to the new house, then you'd easily make up the 25k NE over the 21 year term. My understanding of their transfer products is that they only let you transfer the balance of the tracker mortgage so you'd end up with a split mortgage in effect.

FYI, if you haven't been a landlord before, there are more costs than just the mortgage. Have a read of some of the landlord threads to see if you even want to go down that road.