Can I keep my tracker mortgage?
Introducing Tracker for Movers
Thinking of moving? Concerned about giving up your tracker mortgage?
Before you make a move check out Tracker for Movers.
Tracker for Movers is a tracker interest rate for homeowners who have a Bank of Ireland mortgage loan with a tracker interest rate and want to move home. It lets movers keep the option of a tracker rate on their new home loan, applied to the amount they owe on the tracker mortgage loan they have now. The Tracker for Movers interest rate will be 1% per annum higher than the tracker rate they have now.
What it means for you
If you choose a Tracker for Movers, the interest rate will change in line with the European Central Bank (ECB) Repo rate until the date when the tracker mortgage loan you have now would have been paid off if you’d kept it for its full term, i.e. until the “tracker end date”.
You can have a term for your new loan that ends after the tracker end date, for example, to match the term for any additional borrowing to buy your new home. After the tracker end date, any amount you still owe us will be charged interest at the prevailing Bank of Ireland variable rate for home loans (or we may offer you other rate options at that point).
You can choose from our range of fixed or variable rates available to new customers for any additional funding you need to buy your new home.
How the Tracker for Movers works in practice: an example
Jim and Mary’s current mortgage is €200,000. They're on a tracker rate that's 1.1% above the ECB Repo rate. There are 10 years left to run on their tracker mortgage loan.
They've found a bigger house that's more suited to their needs, and they decide to move. They've worked out that they need a new mortgage of €250,000 to buy it and they've chosen a new loan term of 20 years.
They apply for a mortgage loan of €200,000 with a Tracker for Movers interest rate and an additional mortgage loan of €50,000 to fund the amount required for their new home. Once approved and they draw down their new mortgage loans here's how the details will look.
|€200,000 (this equates to the amount they now owe on their tracker mortgage loan)||
New Tracker for Movers rate of ECB +2.1% p.a. (i.e. current tracker rate of ECB+1.1% plus additional 1%)
Prevailing variable rate (or we may offer other rates available at the time)
The first 10 years of the loan, i.e. to the tracker end date.
The remaining 10 years of the loan.
|Additional mortgage loan: €50,000 (the additional amount borrowed to purchase their new home)||Prevailing fixed or variable rate available at the time they applied||20 year term|
|€250,000 total borrowings|
Some points to think about
The Tracker for Movers interest rate is available on mortgage loans only for a house you or your family live in. You must have an existing Mortgage with the Bank of Ireland Group, with a satisfactory repayment record of at least two years.
In general, a mortgage loan of up to 3.5 times your gross annual income (combined income for joint applicants), and up to 80% of the property value, is available to movers. These limits can vary, so come and talk to us about your plans.
Terms of up to 35 years are available, up to a maximum age 70.
You must be able to fund stamp duty and any buying and selling costs such as estate agent, legal fees, etc.
The Tracker for Movers interest rate varies with changes to the European Central Bank REPO (Refinancing) rate, which is administered by the European Central Bank. This means that the Tracker for Movers interest rate will rise and fall in line with changes to the ECB Repo rate.
The Lender is Bank of Ireland Mortgages. Lending criteria and terms and conditions apply. Mortgage approval is subject to assessment of suitability and affordability. We require property and life insurance. You mortgage your home to secure the loan. A typical mortgage to buy your home of €100,000 over 20 years with 240 monthly instalments costs €615.79 per month at 4.2% variable (Annual Percentage Rate of Charge (APRC) 4.3%). APRC includes €150 valuation fee and mortgage charge of €175 paid to the Property Registration Authority. The total amount you pay is €148,114.60. Maximum loan is generally 3.5 times gross annual income and 80% of the property value (90% of the property value for first time buyers). A 1% interest rate rise would increase monthly repayments by €54.02 per month. The cost of your monthly repayments may increase - if you do not keep up your repayments you may lose your home. Available to over 18s only.