BOI not allowing sale due 20k shortfall on tracker

Discussion in 'Issues with tracker mortgages' started by Clonback, Feb 22, 2017.

  1. Clonback

    Clonback Frequent Poster

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    A friend has agreed a sale on his apartment which has a BOI tracker.There is a 25k shortfall and the bank is refusing to allow sale.
    BOI policy is to allow negative equity to be carried into a new mortgage within 6 months whilst retaining the tracker rate +1%
    As he has not selected a new property they want to charge him 9% on the shortfall.
    Appreciate any advice.
     
  2. Clonback

    Clonback Frequent Poster

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    Vendor was told by BOI today that basically they want to get rid of trackers.
     
  3. Suebee

    Suebee Registered User

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    I assume they are just looking to change it to a personal loan until he has a property and then it will be added to his new mortgage.

    Can they not just keep it at tracker +1 for 6 months though? Of course if he hasn't got property by then it would have to convert to personal loan and he would loose ability to carry in to new mortgage.

    I guess he really needs to find a property himself asap
     
  4. Clonback

    Clonback Frequent Poster

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    The sale is due to close next week to a cash buyer but BOI are not making any decision.
    If the sale falls has he any case against the bank?
     
  5. Suebee

    Suebee Registered User

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    Does he have mortgage approval to buy another property?
     
  6. Clonback

    Clonback Frequent Poster

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    He has not decided yet on a particular house but has no other borrowings and a clear credit record.
     
  7. Suebee

    Suebee Registered User

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    Has he been approved in principal for a negative equity mortgage ? I'm imagining he would need this to keep it at tracker +1 for 6 months but to be honest he needs to look for a property or delay sale of his as 6 months will fly by and he would loose his tracker plus option for negative equity mortgage
     
  8. Ravima

    Ravima Frequent Poster

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    Could he try the nuclear option of bankruptcy, with the alternative of paying something?