Tracker for Movers - Advice Appreciated

[Brendan Burgess]

This was available to people who drew down their loans before 2013.
When you overpaid, you got a flexible payment instruction which said

The funds will be available to redraw at a later date subject to KBC Homeloans Terms and Conditions.

They subsequently withdrew that facility so it would have only applied to overpayments made subject to that flexible payment instruction.

Brendan

 

[Brendan Burgess]

Can I ask if Avant have a clear policy on how the withdrawal of overpayments are handled?

They are the same as every other bank. Overpayments may not be withdrawn.

 

[peemac]

Thank you both, Avant looks very interesting. Can I ask if there is any additional risk associated with moving the existing mortgage to and taking out a new mortgage with Avant as opposed to the traditional banks, in particular in the long term?

No matter who you go with or even stay with BOI, your "existing mortgage" is redeemed and will no longer exist as a mortgage is tied to a property and can't move from one propoerty to another. The "tracker mover" was simply a marketing name. In effect they created a new mortgage and applied a 2.25% tracker on a portion of it.

If you are risk adverse and want total peace of mind, then Avant's ONE mortgage is probably the best. 3.4% fixed for the entire life of the mortgage if the LTV is 80% or lower. Choice between 15 & 30 years. A small amount of overpayment is permitted too (I think 10%).

No matter what happens, the rate is 3.4%
ECB is close to the end of their reducing cycle, so not much downside on this

edit - they also have 1% cashback on the One mortgage product.

 

[Fortune]

Can I ask if Avant have a clear policy on how the withdrawal of overpayments are handled?

Yes, their policy is clear that you can't do it

 

[CoastRunner]

@peemac Thanks, I will look into their fixed rate option too
@Fortune Well, that is clear! Do you know if overpayments can be used as credits for future repayments or if their value is simply limited to reducing the capital?

 

[Brendan Burgess]

@CoastRunner

ptsb is the only lender which allows overpayments to be used as credits.

Neither Avant nor any other lender has a similar facility.

 

[CoastRunner]

Thanks @Brendan Burgess. It would be real pity to give that up while moving home, it has been a good way to save while having access to the cash later on if needed. Do you know if there is any way to hold on to the KBC/BOI tracker portion of the loan while taking out an additional loan to cover a move to a more expensive house?

 

[Brendan Burgess]

No. If you move house, you redeem your mortgage and must take out a new mortgage.

The new lender - even if it's Bank of Ireland - sets the terms. So you will not get a drawdown facility.

If it's very important to you, then apply to ptsb for a mortgage.

 

[CoastRunner]

@Brendan Burgess Thanks for clearing this up.

This site is invaluable for such impartial advice given very generously, thank you again.