Mortgage On House & Two Lenders

I have a mortgage with Danske Bank which is quite low relative to the value of the property, and is a tracker at ECB + 0.5%. I may have to remortgage in order to buy my partner out of the property due to a relationship breakdown. Am I stuck with looking for a top-up mortgage with Danske, or can I approach another lender such as AIB etc who are under government pressure to hand out mortgages? I do not want to clear the existing mortgage and take out a combined mortgage as I will loose the tracker rate on the existing mortgage.

Any chance you could post up some actual figures, income, mortgage, NE etc.

Your first approach should be to Dansk bank.

Thank you bronte. The existing house is worth about 475K and mortgage is 75K. My income is 70K after tax. I do not know the level of maintenance I will have to pay for kids, but it could be in the range 1.5-2K per month. I do not have other debts. My one concern with danske is that unlike the (state owned) pillar banks, they are not concerned about Irish public opinion, and are perhaps more likely to jack up variable rates over time.

I agree with Bronte that your first approach should be to Danske. Existing mortgage is likely to be in joint names so realistically you will need to clear this loan before they will consider a new one. This will mean losing the tracker, unless Danske are really generous. Risk on variable rate rise is unlikely to be any higher with DB than it currently is with BoI or AIB.

I'm not sure if this forms part of your query, but just in case...you cannot have two loans with two different banks secured against the same residential property. Second charges are only considered for large commercial deals. So you can have all the borrowing with Danske, or all the borrowing with AN Other lender, but not a split.

Hi barry

It's not possible to predict which bank will be cheapest in the medium to longer term. If you open a Prestige Account, Danske is relatively cheap at the moment. Don't they have cheapish low loan to value mortgages as well?

So you should start with them. They might let you keep the cheap tracker or they might raise the margin on it from 0.5% to 1.5%. But, of course, they might refuse outright.

The cost of losing your tracker this year would be around 3% of €75k or about €2,200. It will reduce even further as you continue to pay down the loan.

Well worth trying to keep, but losing it won't make your mortgage unaffordable.

Brendan

Thank you both for your help at this difficult time. The key point is I can't have 2 different lenders with a mortgage claim on the home. So it seems that either Danske allow me a second mortgage or I have a single new mortgage with another provider