Moving BOI tracker mortgage

V

venividi

Registered User
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6
Hi
In the process of buying new home.
Current home market value 220kish
Current mortgage 190k tracker +1%
New home 520k, savings 140k and shares 60k. Mortgage required of circa 380k. Contemplated keeping existing house but decided against so availing of BOI tracker switcher product for 5 years. Loath to give up tracker but don't really want the hassle of being a landlord.
I haven't gone to any of the other banks due to the value of the tracker for 5 years mentioned above as there is no point? I am not missing anything? Stay with BOI and revisit in 5 years?
 
Will you comfortably be able to pay 380K? I presume it's 190K on tracker and balance at SVR. What is the SVR?

You might have had to give up the tracker anyway if you the property was no longer your principal private residence.

New mortgage is about 75% so that's good. And don't forget out of the Equity of 30K you'll have about another 20K.
 
Hi and thanks

Yep 190 on tracker. SVR is 4.2%. Can fix for 1 year @ 3.7% so may go for the latter. 380k mortgage will be a drain but should be ok. Would hope to get it down to sub 300k within 3 years with a few lump sums
 
Absolutely no point in going to any other lender if BoI allows you to keep your tracker for 5 years.

Brendan
 
I should have asked BOI this question but if I make a lump sum payment on the new mortgage within the 5 years, would these be set against the svr mortgage portion rather than the tracker portion
 
Better of course against the SVR as the interest there is higher. If you're going to make lump sums in the first year you must not fix. Instead of one mortgage you will have two different mortgages.

When you say in the process of buying - how far along are you? And you do not have your current home up for sale yet?
 
Bronte said:
Better of course against the SVR as the interest there is higher. If you're going to make lump sums in the first year you must not fix. Instead of one mortgage you will have two different mortgages.

Ya thanks. Thought that bank might have had a sneaky rule but bank confirmed what you said.

When you say in the process of buying - how far along are you? And you do not have your current home up for sale yet?
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Only deposit paid at this stage and awaiting contracts. New build and circa 6 month timeframe for completion. Not sure when to put house on the market. Will wait til contracts signed and reach out to EA at that stage for advice. It's in an area in demand so would think should sell fast enough
 
I don't like new builds, certainly not in Ireland. Have you checked the plans 10 times, have you compared the room sizes to where you currently live, are there windows where there should be, are they looking out on blank walls, are you overlooked, can they build behind, is the garden a descent size. Have you thrown the brochure in the bin. Is their a chimney breast in the wall of the main bedroom where the bed goes, is the stairs too steep, is it possible to get furniture into the house, is their a utility ..............

I saw a new house in the last year with some of the above problems ! And had a good laugh with the Estate agent when I pointed out that the downstairs loo, for handicapped - new regulations, could not be got to as the hall was too narrow !!! And I couldn't figure out where this person was going to sleep as there was no bedroom or spare room downstairs - more hair brained regulations.

6 months build - really ! What's the story with roads and street lighting, plenty of estates where those never happened and cowboy builder in Oz.

What are you basing your current house value on. Have you mortgage approval. Can you afford two mortgages.
 
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Bronte said:
I don't like new builds, certainly not in Ireland. Have you checked the plans 10 times, have you compared the room sizes to where you currently live, are there windows where there should be, are they looking out on blank walls, are you overlooked, can they build behind, is the garden a descent size. Have you thrown the brochure in the bin. Is their a chimney breast in the wall of the main bedroom where the bed goes, is the stairs too steep, is it possible to get furniture into the house, is their a utility ..............

I saw a new house in the last year with some of the above problems ! And had a good laugh with the Estate agent when I pointed out that the downstairs loo, for handicapped - new regulations, could not be got to as the hall was too narrow !!! And I couldn't figure out where this person was going to sleep as there was no bedroom or spare room downstairs - more hair brained regulations.

6 months build - really ! What's the story with roads and street lighting, plenty of estates where those never happened and cowboy builder in Oz.

What are you basing your current house value on. Have you mortgage approval. Can you afford two mortgages.
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Mortgage approval today. Have option of buy to let mortgage if I want it for existing house. There is good demand for existing location and anything that comes up is snapped up quickly. 220 is on conservative side.

New house is in a small 4 house development in established City suburb. Not overlooked but potential for small development in adjoining site 4/5 houses max. House is 3 stories so narrow but it is in a nice site and nice location and walking distance to work, city centre and nice walks etc. it's bigger than current location would like slightly bigger but you can't tick all the boxes.....
As an aside, I think the market is cooling based on EA chasing me following viewings rather than vice versa as was the case 6 months ago.
 
venividi said:
Mortgage approval today. Have option of buy to let mortgage if I want it for existing house.
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Hi venividi

First off congratulations on your purchase, I hope it all goes smoothly.

If you don't mind, could you clarify what you mean when you say BoI gave you the option of a buy to let mortgage? Are you saying that BoI would not allow you to retain your tracker if you chose to retain your current house as a rental?

Also, could you expand somewhat on the details of the BoI tracker mover product? For example, are you required to complete the sale and purchase within a particular timeframe?
 
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Sarenco said:
Hi venividi

First off congratulations on your purchase, I hope it all goes smoothly.

If you don't mind, could you clarify what you mean when you say BoI gave you the option of a buy to let mortgage? Are you saying that BoI would not allow you to retain your tracker if you chose to retain your current house as a rental?

Also, could you expand somewhat on the details of the BoI tracker mover product? For example, are you required to complete the sale and purchase within a particular timeframe?
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Cheers
I have decided not to hold on to existing house so buy to let mortgage was just in the context of bridging finance if I ended up in a scenario where existing house was not sold by the time I drew down new mortgage.

I think there is a six month timeline where you are required to have sold your current house and bought new house within 6 months thereafter to qualify but as discussed above they appear to be flexible at least in some cases
 
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