Should I consolidate my mortgages?

I have 2 mortgages with UB, both transferred from First Active a number of years ago.

PPR Mortgage of 190k Offset tracker mortgage ECB + 0.95% - House value 500k
Rental property remaining mortgage of 120k Normal tracker ECB + 0.95% - House value 350k

I am worried about losing the offset tracker mortgage, so thinking of consolidating both mortgages while I can and leave just a mortgage on the rental property. Would also give peace of mind to live in mortgage free PPR

I could pay 70k in cash to leave a mortgage of 240k on the rental property.

Is this something I should explore, or is it something UB would even allow at the moment?

TIA.

Don't do anything for the moment.

You have a contractual right to an offset mortgage. FA's sale to Ulster and Ulster's sale to ptsb won't change your rights.

Make sure to use the offset mortgage bit by having some cash in your current account.

Check that they are offsetting the current account balance against the mortgage.

ptsb might not be able to handle the offset bit, so they might bribe you to give it up.

Brendan

Whatami said:

I could pay 70k in cash to leave a mortgage of 240k on the rental property.

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I don't get this. Do you have this in the current account for which you get the offset? That is where your cash should be.

You can be mortgage free on your PPR while still having a mortgage with an offset mortgage! So if you have €100k on the mortgage and €100k in the current account, you are mortgage-free but have a right to draw down a mortgage at any time in the future if you need it.

Brendan

Thanks Brendan.
All of my cash at the moment is in the Current Account where I get the offset as you say. My concern is if I lose the Current account mortgage as I haven't seen anything in the UB press releases on those. But I will hang tough based on your advice.

Thanks.

I am almost sure banks don't allow consolidation of mortgages.

What you would have to do is take out a new mortgage on Property A to pay off the mortgage on Property B. You won't get a tracker rate. Also, interest on RIP, although small, wouldn't be offsetable against rental income as the RIP no longer has any debt.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

Whatami said:

My concern is if I lose the Current account mortgage as I haven't seen anything in the UB press releases on those.

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I don't see how they can break their contract with you?

If they do, they will have to compensate you.

And the conclusion of the deal is probably a year away, so...

1) If ptsb takes over the Ulster Bank mortgages, and
2) ptsb terminates the offset mortgages, and
3) the Central Bank allows them to do so

then, you can use the cash in your current account to do whatever you want with.

With a tracker at 0.95% , having €70k cash in a non-offset current account is costing you only €700 a year. So if you might need the cash, it's not a big premium to pay for the facility.

Brendan