removing joint-owner from tracker mortgage

T

tiny_tim

Registered User
Messages
2
We have a tracker mortgage with Ulster Bank which for our own individual reasons would like to move the mortgage + house solely into my name.

The banks conditions for doing this are not very attractive !

Some details :
The house is in negative equity of approx. 10%
The joint mortgage is on a tracker rate of ~1%
The mortgage has always being paid on time. I've a stable job and no issues with credit history.

The banks condition for moving mortgage was :
Pay down mortgage to 80% LTV of house (i.e. pay off ~30% of mortgage)
The re-mortgage would have a 'tracker' rate of ~2%

While I have savings to pay down a 'decent percentage' of the loan, I cannot afford 30% !
Also the new 'tracker rate' is far from what I had hoped for ..

I also found a thread on here that suggested UB was much more open to 'porting' trackers :

http://www.askaboutmoney.com/thread...hile-taking-her-name-off-the-mortgage.178959/

Has anyone had similar dealing with UB or other banks ?

Has anyone advice how I should negotiate further with the bank ?
 
Trouble here is UB hold all the cards, with a few taps on the computer they could remove the name but why would they if they could get you off your nice tracker rate. You want them to alter the mortgage and they have decided what their requirements are before they will do it, I don't see any way of forcing them to do a better deal for you unfortunately.
 
Ulster Bank has a contract with tiny tim and big tim.

This is a horrible contract for them. They are stuck in a loss making tracker. It's in negative equity.

They would like to get out of this loss making tracker.

It seems like a fair compromise to me. They take the additional risk of losing a joint payer but reduce this by requiring you to reduce the LTV to 80%.

They charge an increased margin, so the loan will be just about profitable for them.

A few options

You can of course refuse, and do a side-deal between you. There are downsides to this, as you must trust each other and will be tied together for a long time, and your ability to borrow will be limited.

Ulster Bank would really like to do this deal. You could offer a compromise.

Could you replace the other joint borrower with someone else? If so, they might not require an 80% LTV.

I doubt if they will compromise on the interest rate, but again, you could make an offer.

Brendan
 
Thank you very much for the comments above.

The offer was made in recent weeks and I have asked them to confirm it in writing.

Luckily we are not under time pressure to reach a deal so we can balance removing the other name with UB's offer.

As you suggest Brendan, I will make a counter offer to the bank along the lines of agreeing to pay > 20% off the mortgage
providing they allow me keep the existing rate.
If they don't accept this then we re-visit every 6 months or so.

Thanks again for the comments. I will put an update on this thread with any developements
 
You must log in or register to reply here.
Back
Top