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Mortgage Question

  • 10-01-2021 12:08am
    #1
    Moggaman
    Registered Users Posts: 348 ✭✭


    Hi. I am 12 years into a mortgage with a bank. Great track rate.
    I now plan to build again and move into the new house whilst renting the old one.
    I went to a different bank to talk about a mortgage for the new self build. They advised me not to seek a mortgage from my existing bank as if they knew that the house they financed in the first place would not be my principle residence going forward that , it may give them a chance to take the tracker of me??

    Seems a bit mad...although the loan book of my exist mortgage bank was speculated recently to be taken over by a fund.

    What do ye think.
    I would prefer to keep my loans in the one spot and I know their rates are better than the bamk I went to recently.
    Thanks


Comments

  • #2
    KaneToad
    Registered Users Posts: 3,160 ✭✭✭KaneToad


    This is a thing. Your mortgage agreement T & C's will clarify if it applies to you.


  • #3
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,587 Mod ✭✭✭✭L1011


    Its almost - not entirely - certain that your existing mortgage T&Cs not only would take you off the tracker rate if it wasn't your PPR but that you are obliged to tell them that change occurred.

    There are "keep your tracker" products with some banks, but for changing PPR, not keeping the existing property

    Tread extremely carefully and obtain independent financial and legal advice here.


  • #4
    Moggaman
    Registered Users Posts: 348 ✭✭Moggaman


    KaneToad wrote: »
    This is a thing. Your mortgage agreement T & C's will clarify if it applies to you.

    Thanks... the letter of offer of 12 years ago is what you mean I presume...


  • #5
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,587 Mod ✭✭✭✭L1011


    Moggaman wrote: »

    Thanks... the letter of offer of 12 years ago is what you mean I presume...

    That and the actual mortgage contract - which likely came in a later envelope


  • #6
    Moggaman
    Registered Users Posts: 348 ✭✭Moggaman


    L1011 wrote: »
    Its almost - not entirely - certain that your existing mortgage T&Cs not only would take you off the tracker rate if it wasn't your PPR but that you are obliged to tell them that change occurred.

    There are "keep your tracker" products with some banks, but for changing PPR, not keeping the existing property

    Tread extremely carefully and obtain independent financial and legal advice here.

    Yeah, still own quite a bit on house one, so don't want to take any major gambles


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  • #7
    Geuze
    Registered Users Posts: 13,055 ✭✭✭✭Geuze


    Moggaman wrote: »
    Hi. I am 12 years into a mortgage with a bank. Great track rate.
    I now plan to build again and move into the new house whilst renting the old one.
    I went to a different bank to talk about a mortgage for the new self build. They advised me not to seek a mortgage from my existing bank as if they knew that the house they financed in the first place would not be my principle residence going forward that , it may give them a chance to take the tracker of me??

    Seems a bit mad...although the loan book of my exist mortgage bank was speculated recently to be taken over by a fund.

    This is well known.

    If you have a tracker, and you intend to convert the PPR into a rental property, do not tell the bank.

    Obviously, keep up the repayments.

    But whatever you do, do not give the first bank any reason to remove the tracker mortgage.

    How you deal with change of address, etc. - tricky, that's up to you.


  • #8
    Moggaman
    Registered Users Posts: 348 ✭✭Moggaman


    Geuze wrote: »
    This is well known.

    If you have a tracker, and you intend to convert the PPR into a rental property, do not tell the bank.

    Obviously, keep up the repayments.

    But whatever you do, do not give the first bank any reason to remove the tracker mortgage.

    How you deal with change of address, etc. - tricky, that's up to you.

    I think the advice is pretty clear here!!. Thanks all


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