'Temporary' Mortgage Solution?

R

R.Sensini

Registered User
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Hi All,

Would love to get some advice on the following situation from any mortgage experts, apologies for the long post!
  • I have recently bought a new house for €500K and am in the process of selling my current house for €300K.
  • I have paid a non refundable deposit of €50K on the new house and it is almost ready for completion (May 24th).
  • I have an outstanding tracker mortgage balance of €150K with Bank A on my current home which I want to transfer to my new home and top up with an additional €100K. All of this has been agreed with Bank A and the loan offer is ready (although they are adding 1% to the tracker rate).
  • I was previously weighing up the idea of keeping my current home so I also got full loan approval from another institution - Bank B for a €400K mortgage on the new home.
My preference is to sell my current home and transfer the tracker mortgage (+1%) and top up the remainder with Bank A.

The problem I have is that the sale of my current house is unlikely to go through until mid June so I will need to close the purchase of my new house before the sale of the existing one goes through.

The question I have (finally!) is - Can I draw down the Mortgage with Bank B on a variable rate to close the sale of my new home on May 24th and then upon the sale of my existing house (mid June) - transfer the Mortgage from Bank A plus the top up to my new home and effectively use it to clear the mortgage with Bank B?

Is this even possible??

Thanks in advance!
 
From Bank A's point of view you will be remortgaging or switching so would depend what their policy is in relation to transferring a tracker in that scenario.
 
I'd be working out if the new tracker rate of circa 2% for the few years left on the tracker is worth staying with that bank.

If 150k of bank a is on 2% tracker for next 10 years and new part is on say 3.3%, would there be much overall difference if bank B gave you a 2.9% overall rate?

Then when current house sells, pay lump sum off bank b mortgage.

You may need to start on a variable rate with Bank b to pay lump sum off.

I reckon that if you do the calculations, there'll be little difference
 
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