lose tracker if I switch another mortgage?

B

Bolter

Registered User
Messages
184
Hi
I have a mortgage from 2003 with ics now has 60k owing. Rate is 4.5 per cent svr. I got a top up mortgage on that property a tracker from ics in 2006 and there is now 36k owing on that. rate is 0.8 % 6 years left on both those mortgages.
Since 2003 this was our principle private residence. We moved in 2012 to new ppr and got a new svr mortgage with bank of Ireland current rate svr 4%. Bank of Ireland took over ics so hold all three mortgages. Original ppr now rented.
I want to switch to kbc my current ppr mortgage buy I'm concerned if I do, boi will withdraw my tracker on other property. Maybe it's worth the risk as the amount is relatively small?
Could someone show me how I'd calculate the loss if tracker were withdrawn?
 
Unless there is a specific cross charge, which is very unlikely, you are free to move your mortgage to KBC without it affecting the other tracker.

How much is your tracker worth? Very roughly
You are paying 3.2% less than you would be paying if you had a mortgage at 4%
€36k @3.2% = €1,100 in interest this year.
The interest saving will dwindle towards 0 in year 6,
So the average will be around €500
By 6 years - €3,000

Brendan
 
Thanks a mill Brenda
properties are not cross secured.
on the above figures think I'll take my chances and move.
I presume kbc can't seek any sort of cross security (since they will be holding just one of the mortgages?)
 
Just done the ready reckoner on kbc site and there is one major problem - the term.
max term I can have (probably based on age we are mid 40s) is 22 years.
Currently our repayments are 1429 per month (278k term left 27 years svr rate 4 per cent)
Kbc would be 1548 per month for 22 years @ 3.75 per cent
Could shave another .2 % off with the kbc current account ..
Not so attractive now.
With inflation figured in
 
We want to keep the investment property for the following reasons
1. It's in positive equity
2. It's profitable (albeit just.- after costs coming out with maybe 130 pee month)
3. It's leverage -given our age mid 40s I'd like to think we can borrow on it if necessary. Top Up mortgage (4kids)
4. It's central to city and over the last 3 years has appreciated in value.Won't get this if we leave lump sum with a bank.
5. It's part of our pension plans. (One public service pension and this)
 
You must log in or register to reply here.
Back
Top