UB tracker. Need to trade up

C

codemonkey

Registered User
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Hi guys, me and the wife are trying to figure out whether to sell or now.
Situation is - living in 3 bed semi in cork city, when we bought had 1 child, now have 3 so place is a bit cramped. Currently have UB tracker, not in negative equity. Have €30k savings so we could convert the attic to a fourth bedroom for extra space or we could use it to trade up to a bigger house.

If we move we lose the tracker (I'm meeting the bank soon to see exactly what the situation these days is with the tracker).

If we stay we could possibly convert the attic and have mortgage paid in about 10 years. If we move we have a bigger house but higher repayments and longer term. The area we live in currently isn't the best either, it's ok though and I'm very close to work.
 
I'd stay put if I was you. Convert the attic for additional space and as you said you'll have the mortgage paid in ten years. Not a bad position to be in.
 
Ulster Bank allows people to trade up and retain their tracker mortgage. So if you qualify for a bigger mortgage, you should be able to move at a reasonable cost.

Having said that, the comfort of being mortgage-free in 10 years and living close to work must be very attractive and is probably worth being "a bit cramped" and living in an area which "isn't the best"
 
Thanks for replying. Yes, I'm keen enough to see what UB say when I call in, theres an element of personal problem and an element of financial problem about this. My own preference is to stay and convert the attic. I'm 34 now so have the house paid for by 44 would be a great position to be in. The wife is of a different opinion to me though! :)
 
Hi all
I dont think Ulster bank are allowing the 'porting' of your mortgage (which means retaining your tracker) any more will check for sure but i think it was withdrawn as an option during last year. Will confirm for certain tomorrow P
 
Hi codemonkey,

Factor in also whether you are finished with 3 kids. You are a bit cramped with the 3 now and you are only 34, so there are a few years to go yet!
 
Yes, that is a concern, we're cramped now and likely to be cramped for years to come. The wife says we can't be a slave to the tracker and she has a point but I worked out that if we were to take out a mortgage today for the amount we have left to pay at the same term it would cost us an extra €150 a month, just for the same money we have now!!!
 
You have to list all the pro's and cons and the figures.

Con

Cramped
Bad location
New location is further to travel


Pro

Better location
Nicer house
Wife wants to move (top of the list that one;))

Also what is the advantage to finishing your mortgage at 44. What's wrong with finishing it at say 55.
 
You have to get a balance.

A tracker is very valuable in the early stages of the mortgage when the balance outstanding is high, but becomes less valuable as you pay down the capital.

By staying where you are now and putting up with cramped conditions, you are paying big lumps off your mortgage instead of paying interest to the bank. But there is no need to do this for the next ten years. Check out the numbers and agree a deadline to move - e.g. 3 years. That may well satisfy both of you.
 
Could you hold off for a few years, keeping your tracker and at the same time saving so as to have a bigger pot for putting down on the new house.

We're in a similar situation but going to hold off for a few years. The longer we have the tracker the better.

Of course, you then risk this option being taken off the market.
 
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