Trying to buyout & keep tracker

M

Mitch

Guest
Four years ago we bought a house in partnership with another couple. It’s been our home and we have a legal agreement of splitting the mortgage 80/20. Due to a windfall we are in a position to buy the other couple out and we can manage the 100% mortgage on our own. Buying 20% will be under the stamp duty threshold. Both parties want this to happen and have agreed terms. We have a tracker mortgage 0.75% above the ECB rate. But when I talked to the Bank (UB) I was told all they’d offer was a new mortgage at something like 4.6% variable. This will add about €4000 a year to our current deal. All I want them to do is to remove the other couple from the mortgage and keep the tracker, it’s not like I’m asking to begin something we don’t have already. But their response is making it impossible to proceed, given all the other hits from the budget and that we would be taking on the other 20%. If we can’t do this deal now we will be forced down the line to sell the family home – and that’s not much of an option these days. Am I being unreasonable in feeling aggrieved? Can anyone see another way forward? Thanks!
 
AFAIK when you buy the other couple out you will be taking out a new mortgage with new terms so ulster bank are perfectly within their rights to decide what product type to offer you. Only thing to do would be to shop around and look at other banks' rates to see if you can get a better deal
 
Frankly I think you are right to feel aggrieved. However the system is set up so that it doesn't allow this kind of transfer. You have to get a new mortgage and go through all the same pain you did to get the original mortgage. (I have been through this buyout thing with my ex-partner).

All I can advise is to go see a broker and try and get the best deal you can.
 
thanks - was hoping for another angel but suspected as much!
 
Funny, another post refers to this:

[broken link removed]

If you were to move lender would they change their mind...?
 
AKA said:
Funny, another post refers to this:

[broken link removed]

If you were to move lender would they change their mind...?
Click to expand...

That transfer does not involve a change of names on the mortgage though, so it is not the same thing. I reckon the banks could be more flexible in this regard if they wanted. However there is no way they will be flexible with some one on tracker of ECB+0.75. All they want is people off loss making trackers.
 
I dont think anyone is offering Trackers at that rate today.
However, have you looked at the possibility of leaving the existing Tracker mortgage in place and agreeing with your former partners to indemnify them (through a separate legal agreement) from any liability for the loan.
This would probably have to include a clause stating that in the event of a default / repossession the first 20% would be use to clear their liability.
Even if you had to pay your partners a little extra (yearly) it would be worth it for the next 3-5 years.
 
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