You
can move your tracker with Ulster Bank for 10 years at ECB +2%. Well, you take out a new mortgage, but they give you a reduced rate for 10 years.
http://digital.ulsterbank.ie/personal/mortgages/home-mover-2.html
"You cannot transfer your existing tracker rate to your new home, however you can choose our 10 year European Central Bank (ECB) tracker rate of ECB+2.00%
(2.6% APRC variable) for loan amounts
up to your current level of tracker borrowings."
So you need to factor into your calculations, that you will be borrowing €225k @3.6% instead of at 2.05%.
You are proposing to borrow €440k@3.6% which will be €16,000
So let’s look at what happens if you sell your house and transfer your tracker
New house €570k
Mortgage: €380k ( €440k proposed less €60k equity)
Loan to Value: 67%
You might qualify for Ulster Bank’s rate of 3.35%, but let’s assume you pay 3.7%.
So your interest would be:
So, you are paying an additional interest bill of €6,000 if you keep your home.
When the 10 years is up, you will have a much lower Loan to Value and will be able to qualify for the best deal in the market at that time.
You will have borrowings of €665k if you keep your home. You will be very vulnerable to interest rate rises and property price falls.
In my view, this isn’t even close. Sell your home and try to transfer your tracker.