Be careful about Finance Ireland's "Bring your fixed rate with you"

[Leighlinboy]

Hi Brendan, appreciate you giving this the once over .


1) Existing tracker margin - 1.1%
2) Amount outstanding on your mortgage - 237k
3) Remaining term - 19 years
4) Lender - KBC/BOI
5) Value of your home - 400k
6) Might you trade up or overpay your mortgage? - (considering trading up in new year, boi will add 1% to let me move tracker i believe, then remainder at SVR )
7) Do you face any barriers to switching - e.g. an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage. - No
8) What rates are you considering fixing at? - Finance Ireland 2.9% 10 year fix

 

[Brendan Burgess]

Update with thanks to Paul F.

The "bring your mortgage with you" only applies after three years, so Leighlin Boy would have been caught out by this!


Hi Boy

If you are trading up in the new year, I would keep things simple and not change anything. Then when you are trading up, you can shop around for whatever the best deal is at the time.

The alternative is to fix now with Finance Ireland. You could bring that mortgage with you and borrow the balance at their then mortgage rates. Just not sure how all this works in practice. If you sell first, must you buy the other house within 6 months? What if the LTV is above the original LTV you drew the mortgage down at?

• Finance Ireland's 10-year and longer fixed rates allow you to "take your mortgage with you" if you move home – meaning that you get to keep the same interest rate, and they will waive or refund any break fee (subject to certain conditions).

Brendan

 

[Leighlinboy]

Hi Boy

If you are trading up in the new year, I would keep things simple and not change anything. Then when you are trading up, you can shop around for whatever the best deal is at the time.

The alternative is to fix now with Finance Ireland. You could bring that mortgage with you and borrow the balance at their then mortgage rates. Just not sure how all this works in practice. If you sell first, must you buy the other house within 6 months? What if the LTV is above the original LTV you drew the mortgage down at?

• Finance Ireland's 10-year and longer fixed rates allow you to "take your mortgage with you" if you move home – meaning that you get to keep the same interest rate, and they will waive or refund any break fee (subject to certain conditions).

Brendan

Thanks Brendan
To move that tracker to new home when trading up will incur a 1% add on ... so a 2.1% tracker isnt as appealing with a few rate rises coming .

 

[Paul F]

The alternative is to fix now with Finance Ireland.

• Finance Ireland's 10-year and longer fixed rates allow you to "take your mortgage with you" if you move home – meaning that you get to keep the same interest rate, and they will waive or refund any break fee (subject to certain conditions).

You could bring that mortgage with you and borrow the balance at their then mortgage rates.

From Finance Ireland's webpage:

You must be at least 3 years into your fixed rate period to transfer your rate.

@Leighlinboy Therefore, you will not be eligible for the "take your mortgage with you" benefit of Finance Ireland's long-term fixed rates if you trade up in the new year. But if this feature interests you, you could talk to them and see if they would make an exception.

Just not sure how all this works in practice. If you sell first, must you buy the other house within 6 months?

Within three months, in fact. See the above webpage.

What if the LTV is above the original LTV you drew the mortgage down at?

That situation is not explicitly covered in the above webpage. I wonder if they use the rate for the higher LTV bracket as it was when you first fixed with them?

@Leighlinboy When you posted your mortgage details in the switcher thread, you quoted a different, non-tracker interest rate. How come?

 

[Brendan Burgess]

Hi Paul

From Finance Ireland's webpage:

You must be at least 3 years into your fixed rate period to transfer your rate.

I did not know that but my instinct was correct that there might be terms and conditions he might fall foul of.

Brendan

 

[Leighlinboy]

From Finance Ireland's webpage:

@Leighlinboy Therefore, you will not be eligible for the "take your mortgage with you" benefit of Finance Ireland's long-term fixed rates if you trade up in the new year. But if this feature interests you, you could talk to them and see if they would make an exception.


Within three months, in fact. See the above webpage.


That situation is not explicitly covered in the above webpage. I wonder if they use the rate for the higher LTV bracket as it was when you first fixed with them?

@Leighlinboy When you posted your mortgage details in the switcher thread, you quoted a different, non-tracker interest rate. How come?

Hi Brendan/Paul
Thanks for the advice above.

From Finance Ireland's webpage:

@Leighlinboy Therefore, you will not be eligible for the "take your mortgage with you" benefit of Finance Ireland's long-term fixed rates if you trade up in the new year. But if this feature interests you, you could talk to them and see if they would make an exception.


Within three months, in fact. See the above webpage.


That situation is not explicitly covered in the above webpage. I wonder if they use the rate for the higher LTV bracket as it was when you first fixed with them?

@Leighlinboy When you posted your mortgage details in the switcher thread, you quoted a different, non-tracker interest rate. How come?

Hi Brendan/Paul
Thanks for the update
I was very well down the line with a mortgage switch to Finance ireland at the 2.4% 10 year fixed . I was not and am not aware of the 3 year wait stipulation and this was never mentioned , i explained i planned to trade up so would hope an exception is easy to come by or i could have made a big mistake despite plenty of research . I was given an ltv rate after valuation 2.4% ... id carry that rate for that portion of mortgage to next place .. and make up the difference in parallel with 2nd mortgage as such next year at whatever rate was available then .

I was aware theres a 3 month window for the trade/switch offer which atm with lack of properties would be quite stressful .

Thats a good spot by you ,my circumstances have changed dramatically in the last week , i may see some white smoke coming from my tracker complaint/fspo with my provider after 10 years ... this has thrown me and my plans completely up in the air . My 3.5 variable will become a 1.1% tracker shortly ..I will update the appropriate thread re tracker .

I have obviously put the switch on hold as i need to sit down and weigh everything up all over again. Not a bad position to be in !