Tracker Mover with AIB

[laura28]

Hello!

Has anyone successfully completed a tracker mover mortgage with AIB? I have posted on here before and received excellent advise so here I go again

Financial Details

Mortgage -

2 bed apartment in Dublin
Mortgage Interest Rate – Tracker =.75% with AIB
Current Monthly Amount - €600
Borrowed €227,700 Feb 2007 (over paid for a number of years)
Outstanding €169,750
Current Value – Approx. €160,000 - €180,000


Incomings & Outgoings
Salary 1 - €42k
Salary 2 - €57
Monthly Take Home - €5200 (I returned to work full time recently to help us get mortgage approval)
Children – 2, no child care costs (recent retirement of MIL to help us out)
Savings – €20K


A couple of points - we had hoped to move using the negative equity/tracker mover option. However, our apartment is currently rising in value, should be great news, but putting us into the 20% deposit requirement. I have engaged with AIB on a number of occasions and they are very wishy washy in terms of what we can & can't do.

In an ideal situation we want to sell, take the €5k approx. negative equity and move it to a new mortgage, we have been approved in principal for approx. €340k which is sufficient. The current balance will remain at the tracker + 1% and the new mortgage at SVR. We have our eye on a property for €340 and nearly have savings for 10% but not 20%.
The value of the property is unclear - we are border line negative equity. AIB advised that it would be valued by their valuation team and then if they advice a price that is below current loan amount we will proceed with negative equity application. I queried what would happen if it's sold above the valuation at positive equity price and got a mumbled response mentioning leeway and Central Bank rules.

I would appreciate any advice or views on the above.

Thanks

 

[Brendan Burgess]

What is your question?

If you are in positive equity, the Central Bank requires you to have 20%. However, AIB is allowed to make 15% exceptions, so it's likely that they would make an exception for you but they have an absolutely minimum requirement of 10% in all cases.

If you want to buy a house for €340k, you will need €34k. As you have only €20k, it's unlikely that you will get a mortgage.

Brendan

 

[laura28]

Thanks Brendan, I appreciate my query wasn't very clear. We are looking at a new build, so putting an initial deposit down now and then in 6 months the balance, approx. €29k, we envisage we will have well saved the remaining balance in the next 6 months and will start applying for mortgage approval then.

So, we get our apartment valued, it sells for a higher value - in positive equity and suddenly we need €68k rather than €34k, where does that leave us?
What valuation is used to decide if it's a negative equity mover mortgage - the valuation given by the bank or the actual sale price obtained?
You mentioned possibility of being part of AIB's exemptions, are the exemptions based on situations like ours?

I would love to hear from someone who has actually moved using the tracker mover option to see what their experience has been.

Thanks