Trading up & keeping NIB tracker?

Bobokerr

Hi all,
My wife and I bought a house in 2004 and changed to an NIB (now Danske Bank) tracker mortage in 2006. The value of the mortgage is €190K, the value of the house is €180K. Both of us are still working so the small bit of negative equity is no problem for us; plus many people are sadly much worse.

However we would like to buy a new house for about €230K. We could use our savings to make up the €50K shortfall between the value of the two houses.
We currently have a great tracker rate with NIB (0.5 above the ECB rate) and obviously we could not afford to lose this and have to pay the extortionate rates in the market at the moment.

I will ask NIB about keeping the tracker rate if moving house, and clarify that we wouldn't be seeking any extra money; just to switch the existing mortage value to a different house. However I am sure they would love to get me off the tracker which I assume is a lossmaker for them.

Before I ask about it, has anyone transferred mortage to a new house and kept the tracker, especially with NIB Danske?
Any other advise on how best to do this and not jeopadise my tracker?

Thanks All.

rahenyrover

Bobokerr wrote: »

Hi all,
My wife and I bought a house in 2004 and changed to an NIB (now Danske Bank) tracker mortage in 2006. The value of the mortgage is €190K, the value of the house is €180K. Both of us are still working so the small bit of negative equity is no problem for us; plus many people are sadly much worse.

However we would like to buy a new house for about €230K. We could use our savings to make up the €50K shortfall between the value of the two houses.
We currently have a great tracker rate with NIB (0.5 above the ECB rate) and obviously we could not afford to lose this and have to pay the extortionate rates in the market at the moment.

I will ask NIB about keeping the tracker rate if moving house, and clarify that we wouldn't be seeking any extra money; just to switch the existing mortage value to a different house. However I am sure they would love to get me off the tracker which I assume is a lossmaker for them.

Before I ask about it, has anyone transferred mortage to a new house and kept the tracker, especially with NIB Danske?
Any other advise on how best to do this and not jeopadise my tracker?

Thanks All.

You've no chance unfortunately. A mortgage and all it's associated t's & c's are unique to the property. Move house and you have to get a new mortgage which won't be a tracker. Sorry to be the bearer of bad news.

Bobokerr

Cheers rr, yea I thought so, even though it makes no real difference to the bank.
Ah well, maybe i'll add an extension ;-)

If anyone else has any further info id appreciate it, thanks

Henry Ford III

Bobokerr wrote: »

Cheers rr, yea I thought so, even though it makes no real difference to the bank.
Ah well, maybe i'll add an extension ;-)

If anyone else has any further info id appreciate it, thanks

It'd make a big difference to the bank, which is why they won't do it.

Bobokerr

you know what I mean and i know what you mean.
what difference would it make to the bank if im borrowing 190K against a house I bought in 2004, or one I might buy in 2013.
its the same loan over the same period with the same repayments etc.

but yes, I know the bank will just say that its not the same loan, coz its against a different property, so new terms apply in the current climate etc.
ah well!

chris85

Bobokerr wrote: »

you know what I mean and i know what you mean.
what difference would it make to the bank if im borrowing 190K against a house I bought in 2004, or one I might buy in 2013.
its the same loan over the same period with the same repayments etc.

but yes, I know the bank will just say that its not the same loan, coz its against a different property, so new terms apply in the current climate etc.
ah well!

Its totally different. They loaned to you in 2004 on a tracker not expecting a bust and ECB rates to drop so low. This is killing them at the moment. They are under no obligation to carry over your tracker and they are well within their rights to have you get a different mortgage agreement for the new property.

pauld

while you are unlikely to keep your tracker, they may be willing to offer you a competitive rate versus their current advertised rates to get you off the tracker.

The only question are they still offerring domestic mortgages in the Irish market?

Rock Steady Edy

Bobokerr wrote: »

Before I ask about it, has anyone transferred mortage to a new house and kept the tracker, especially with NIB Danske?
Any other advise on how best to do this and not jeopadise my tracker?

We've just been trying to get information on this; our mortgage is similarly with NIB / Danske Bank. I have learnt that Ulster bank have done this in the past. Danske Bank aren't doing it currently.

Eventually I think what we'll see is that banks will let you take your tracker with you, and top it up with a variable rate at the current rate. Whether this is forced by the regulator, or driven by the banks desire to reduce losses on trackers, I wouldn't like to say. It clearly bouys up the property market, as it reduces average borrowing costs, allowing you to borrow more than a standard variable rate would allow.

On a separate note regarding Danske Bank, our local branch which was "closed down" 3 weeks ago actually appears to be in use. Perhaps branches are being used for training as they are probably still having to pay rent on them. Although they have taken the main NIB sign down, small Danske Bank signs are on the door. Very strange.

Personally, I don't think their 9 branch model will work at all. It's a right mishmash, neither a proper telephone bank with properly trained staff (like First Direct in the UK) where they can send you any necessary documentation in the post, nor a bank with a full branch network that you can access easily.

handlemaster

Rock Steady Edy wrote: »

We've just been trying to get information on this; our mortgage is similarly with NIB / Danske Bank. I have learnt that Ulster bank have done this in the past. Danske Bank aren't doing it currently.

Eventually I think what we'll see is that banks will let you take your tracker with you, and top it up with a variable rate at the current rate. Whether this is forced by the regulator, or driven by the banks desire to reduce losses on trackers, I wouldn't like to say. It clearly bouys up the property market, as it reduces average borrowing costs, allowing you to borrow more than a standard variable rate would allow.

On a separate note regarding Danske Bank, our local branch which was "closed down" 3 weeks ago actually appears to be in use. Perhaps branches are being used for training as they are probably still having to pay rent on them. Although they have taken the main NIB sign down, small Danske Bank signs are on the door. Very strange.

Personally, I don't think their 9 branch model will work at all. It's a right mishmash, neither a proper telephone bank with properly trained staff (like First Direct in the UK) where they can send you any necessary documentation in the post, nor a bank with a full branch network that you can access easily.

I think they will eventually cop onto the fact that the Irish business is dragging the whole Danske into muddy waters. Their credit rating was cut as a result of poor proformance and large property debts. I know they have said before that they don't take the ECB rate as their borrowing cost but with ratings cut etc the interest rates make trackers look like a loss maker. They had a share offering recently to shore up their funds which was bought mostly by the current shareholders.The ECB have said yesterday growth for europe will be around .3% next year therefore I don't see a movement upwards of the ECB base rate. The trackers mortgages I predict with NIB will be either sold on to an investment group or deals given/ offered.