Four loans,one account selling house

F

Fredmck

Registered User
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Hi,

I have a Mortgage with KBC bank, There is 2 house loans and 2 top up loans all included on this mortgage, both houses are in positive equity and have less than 40% to pay back on both houses. All of the loans have their own product references and all have their own interest rates.

My problem is that I am selling one of the houses to buy a new home and I want to pay off both top ups and the loan on the house that I am selling, this will leave me with enough money to purchase my new house. I want to retain the current loan on the second house as it is a Tracker mortgage on a good rate. The bank tell me that I need to pay everything off and reapply for a new mortgage on the second house, they say that I can get a tracker mortgage again but will not put that in writing.

Should I believe this?
Should they allow me to keep my tracker as it's got it's own product reference?

Thanks for any help...
 
I am presuming the loans are cross secured on both properties? If not they would have no case to insist on all being cleared. Just because they are different product references makes no difference.

First clarify with them what loan is secured on what property and are they definitely cross secured. If they are not cross secured then I can't see how they would insist you clear anything but the loan/s secured on the one you are selling but if they are then it's a different story.
 
The loans are cross secured, I used the positive equity in the first house to help get the loan for the second house. Does this mean that I have no grounds for keeping the tracker rate on the second house?
 
It will probably be a fight to keep it. Of course they could allow it providing the loan to value on the house not being sold and the mortgage are ok but they may see this as a way of getting rid of the tracker. If they do I don't see what you can do other than put up a good argument.

If the houses are cross secured then they could insist on repayment of the lot to release the deeds of either if it suits them.
 
KBC allows people to move their tracker if they are moving their family home. They increase the rate by 1.25%, so it may be worth considering.

https://www.askaboutmoney.com/threads/analysis-of-kbc-tracker-mover-mortgage.187758/

Unfortunately, they do not have the details on their website - they say to ring them to find out more.

Could you buy your new home without selling the property? I am not recommending it, just asking if it's possible.

Brendan
 
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