First Active Current Account Mortgage

McSween

I have had this since 2005 and since Ulster Bank took over First Active. If I were to approach Ulster about moving home I assume that this current deal is going to be finished. I understood that new property means new mortgage but have heard in some institutions they will continue at same rate if you close sale and purchase on same day. Anyone have experience of this?

phormium

The First Active Current Account mortgage actually had as one of it's features the ability to be transferred to a new property, this was unusual at the time it was launched but probably most people have forgotten this was part of it, I actually think UB would like to forget it too!

However in the present climate they will only allow you transfer the amount already outstanding, in other words they won't increase the current account mortgage to the new amount you need as that would be giving you extra funds at tracker rate of 1.15% over ECB.

So you can transfer the existing amount and would need a new separate mortgage from them for the extra at whatever is today's rate.

McSween

Many thanks for that answer.

The new loan amount may be about 100,000 or less. We would sell house we are in to use equity. I presume the new 100,000 loan must be through UB also?

phormium

Do you mean you need 100k extra plus what is already outstanding on the C/A mtg?

If so then yes that loan has to be with UB as they hold the deeds, no other lender is going to give a mortgage without the deeds and to get them you would have to pay off the UB mtg.

Check the figures and see what rates you can get elsewhere, depending on amount o/s etc which is at a low rate of 1.15 over ECB it might make more sense to get the whole loan with another lender although I doubt it as I think even UBs rates on new borrowing are pretty good at the moment and the C/A mtg is actually a very good product anyway.

Check too if you have any 'facility' amount on it that can be drawn down, it should be on some of the regular statement documentation you get from them. If there is then you can 'redraw' that money as such subject to their being life cover in place. Although bear in mind that the C/A mtg while it can be switched to another property they are highly unlikely to extend the term on it so it will still have the original term. If you draw down any extra facility that is there then the payment go up obviously but you will be limited to existing term on that money.

Needs a bit of calculation to be done!

McSween

Thanks. Excellent information there.

Yes. We have 164,000 left and if we wanted to buy a detached we would have to borrow the additional.

My wife is better at all this so we can check it out together as a combined mortgage of the balance above plus 100,000 would be about 1,100-1,200 a month over. We have about 26 years left and new borrowing would be over 20 years - we wouldnt want any long term if they gave it to us.

Hopefully they will let us borrow.

phormium

Just make sure they confirm you can move it to another property, you can but it's hard to find anyone left that actually knows that at this stage! Unlikely that branch staff would even know it unless you happen across a previous FA mortgage advisor in a UB branch, I doubt there are many left. Mortgage Dept in HO should know about it.

McSween

Do you have one yourself as I’d probably need some literature to state it is possible

phormium

I do but don't think I have anything that shows that, I don't think it's in the conditions, it was one of the benefits of the product. I have my original loan offer and some other docs, I'll have a look later and see if it mentions it anywhere.

I got one of the 'facility drawdown' forms lately without any difficulty but haven't looked to transfer it nor won't be at this stage

phormium

Well I read through all the stuff I have and as I suspected no mention of it but then it is mainly the loan offer and the terms and conditions for the current account part of the product I have. I don't have anything about the mortgage part itself other than references to it being secured on your principal private residence only.

It doesn't clearly mention anywhere about being able to move it but then again it doesn't refer to other features of it either such as the available facility part.