Switching from a tracker

[PaddyDublin]

I know, people will think I'm crazy.
I'm an owner occupier in an apartment with 280k left on a 360k tracker mortgage with Bank of Ireland.
I'll be buying a house to live in quite soon and was hoping to rent the apartment, but I need some more money for the house deposit.
I've two questions please:
-My mortgage was with ICS, now Bank of Ireland. As far as I remember ICS mortgages were sold to Dillosk but BoI administer them. Would BoI be willing to pay a lump sum for me to switch from a loss-making tracker to an SVR? I heard of people being bought out of trackers years ago but wasn't sure if it was an urban myth.
-Would I be able to carry the 280k tracker mortgage to a new property and pay a little extra to keep the tracker (about 1% on top of the tracker rate I believe?) and get a fixed/SVR for the remainder of the mortgage on the new house?

Thanks for any advice.

 

[Sarenco]

Taking your two questions in turn:-

- No chance! Trackers are generally not loss making for lenders - this is one urban myth that just will not die.

- Yes, BOI have a tracker mover product - it's your current margin over ECB, plus 1% for five years. After the five years are up, you can fix or switch to another lender if that makes sense at that time.

I think you should take a step back and try and figure out if it really makes sense for you to keep your apartment as a rental. I worked up this post a while ago to try and give a framework for making this decision - do let me know if it helps or if you have any queries:-

https://www.askaboutmoney.com/threads/keep-apartment-as-rental-or-move-tracker.203907/

 

[PaddyDublin]

Thanks Sarenco. Your post was really useful. Great to have a breakdown of all the issues involved.

I think for what I'd get back in rent after tax it wouldn't be worth it.