Hi, I purchased a home in 2008 with a mortgage from First Active that was on a fixed rate of 5.65% for the first 5 years. I have had my house up for sale for about 2 years as the location is now very unsuitable for me and my son and have recently got a very good offer which i have accepted. When i requested redemption figures from Ulster Bank they had added early repayment charges of €5k onto the negative equity element of €4k to redeem the mortgage. My fixed rate term is due to expire in Oct 2013 and i am then due to go onto a tracker rate of 2.9%. I have been in contact with Ulster Bank a number of times in the last few weeks about transferring (or porting) my tracker mortgage onto a new property and i seem to be getting a different story from each person i speak to so i am now very confused and would like to check what i can do.
First of all i was told by the mortgage adviser in one branch that once i paid the negative equity of €4k that i could transfer the full amount of €160k onto a new property and that i would then not be charged the early breakage fees of €5k and that the bank would do 100% loan to value so it did not matter if the new property i was buying was only worth €160k and i had no savings.
I completed the mortgage application and gave them all my documentation and a few days later got a call from the mortgage adviser to say he was wrong they would only do a max of 90% loan to value and that they could not transfer the mortgage until i go onto the tracker rate after Oct 13 (by which time i will have lost the sale on my house).
I was then dealing with the branch manager in another branch who told me i could pay the breakage fee and revert to tracker now and then would be able to complete the transfer at 90% LTV (my mother said she could loan me the 10% difference and if my mortgage is on a tracker rate i would be able to afford to pay her back monthly), so again i filled in all the forms etc and was told all should be fine. Then i got an email yesterday to say that if i paid the breakage fee my mortgage would go onto a standard rate variable and NOT a tracker rate. I got a copy of the original loan offer from First Active this morning and there is no clause in the offer that says if i break the fixed term i revert to variable, the offer just states the fixed rate and the tracker of ECB +2.15% thereafter.
Obviously i was a bit confused then how they could tell me i will have to go onto a SVR so i emailed the loan offer onto the branch manager i have been dealing with but got a reply that he is out of the office so i then rang the main Ulster Bank mortgage helpline and after giving my mortgage account number and explaining my query i was told that if i pay the breakage fee my mortgage will revert to tracker and not SVR and that i could then transfer my tracker mortgage onto the new property. When i asked could i get this in writing i was just told 'no'.
I dont know what to do now as each person i talk to is telling me different things and if i cant bring the tracker rate with me then i cant really afford to go ahead and sell my house and need to sign the contracts for the sale very soon. I am afraid that Ulster Bank will take the breakage fee of €5k, let me sell my home and redeem the mortgage and pay them the negative equity of €4k and then will only give me a new mortgage on SVR not tracker in which case i will not be able to pay back the 10% difference and also would not be able to afford to pay rent and the loan for breakage fees, negative equity and estate agents fees etc so i could then end up with nowhere to live
Has anyone else had any experience with this or been able to transfer their tracker mortgage?
First of all i was told by the mortgage adviser in one branch that once i paid the negative equity of €4k that i could transfer the full amount of €160k onto a new property and that i would then not be charged the early breakage fees of €5k and that the bank would do 100% loan to value so it did not matter if the new property i was buying was only worth €160k and i had no savings.
I completed the mortgage application and gave them all my documentation and a few days later got a call from the mortgage adviser to say he was wrong they would only do a max of 90% loan to value and that they could not transfer the mortgage until i go onto the tracker rate after Oct 13 (by which time i will have lost the sale on my house).
I was then dealing with the branch manager in another branch who told me i could pay the breakage fee and revert to tracker now and then would be able to complete the transfer at 90% LTV (my mother said she could loan me the 10% difference and if my mortgage is on a tracker rate i would be able to afford to pay her back monthly), so again i filled in all the forms etc and was told all should be fine. Then i got an email yesterday to say that if i paid the breakage fee my mortgage would go onto a standard rate variable and NOT a tracker rate. I got a copy of the original loan offer from First Active this morning and there is no clause in the offer that says if i break the fixed term i revert to variable, the offer just states the fixed rate and the tracker of ECB +2.15% thereafter.
Obviously i was a bit confused then how they could tell me i will have to go onto a SVR so i emailed the loan offer onto the branch manager i have been dealing with but got a reply that he is out of the office so i then rang the main Ulster Bank mortgage helpline and after giving my mortgage account number and explaining my query i was told that if i pay the breakage fee my mortgage will revert to tracker and not SVR and that i could then transfer my tracker mortgage onto the new property. When i asked could i get this in writing i was just told 'no'.
I dont know what to do now as each person i talk to is telling me different things and if i cant bring the tracker rate with me then i cant really afford to go ahead and sell my house and need to sign the contracts for the sale very soon. I am afraid that Ulster Bank will take the breakage fee of €5k, let me sell my home and redeem the mortgage and pay them the negative equity of €4k and then will only give me a new mortgage on SVR not tracker in which case i will not be able to pay back the 10% difference and also would not be able to afford to pay rent and the loan for breakage fees, negative equity and estate agents fees etc so i could then end up with nowhere to live
Has anyone else had any experience with this or been able to transfer their tracker mortgage?
