Key Post Analysis of KBC tracker mover mortgage

Brendan Burgess

Brendan Burgess

Founder
Messages
52,046
Charlie Weston reported earlier this year that KBC were going to allow people to retain their trackers. Have they released details. This is all I can find on their [broken link removed].
If you are an existing KBC Tracker Mortgage customer and you are looking to move home, please contact us on 1800 51 52 53 to discuss your options.
Click to expand...
 
I spoke to KBC and got the following information on their tracker mover

1) It is live. People can apply for it now and be approved
2) They charge an additional 1.25% on the tracker element for the remaining term of the tracker
3) People in negative equity can apply
4) Trade up maximum LTV is 125%
5) Trade down maximum LTV is 175%
6) The borrower must have 10% of the purchase price. This would need to be cash for someone in negative equity. But someone in positive equity who sells their home would presumably have 10% of the purchase price of a new house from the sales proceeds.

What is the procedure?
You apply for a mortgage in the normal manner.
If you meet the earnings criteria, they will give you Approval in Principle
If your loan has been restructured recently, you are not likely to qualify for a new mortgage
You can then sell your house.
When you buy your new house they will give you a new tracker
There is no time limit between selling your own and buying a new house, however, Approval in Principle expires after 6 months. So if your earnings change in the meantime, you might not be approved for a loan
 
Can someone in arrears trade down and keep their tracker
All arrears cases are dealt with on a case by case basis.

But I imagine that if a trade down resulted in a more sustainable mortgage and repaying a lump of the tracker, KBC would go for it.

Can a single person on a cheap tracker transfer it to the purchase of a home in joint names?
Yes.
 
You must log in or register to reply here.
Back
Top