Tracker for Movers
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 interest rate, which will be 1% higher than the tracker interest rate they have now, on a portion of their new loan that is equal to their current loan.
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 of 70.
You must be able to fund stamp duty and any buying and selling costs such as estate agent, legal fees, etc.
Technical information about Tracker for Movers
This is a new loan. You cannot carry over the tracker rate from the tracker mortgage loan you now have.
The Tracker for Movers interest rate is a new tracker interest rate that differs from the interest rate on the tracker mortgage loan you now have in the following ways:
- The margin over the ECB Repo rate is 1% higher than the margin over the ECB Repo rate on the tracker mortgage loan you now have
- It lasts for the remaining term of the tracker mortgage loan you now have, i.e. until the tracker end date
- It may not apply to the total amount that we lend you to allow you to move home. We will apply the Tracker for Movers interest rate to an amount no greater than the amount you owe us on the tracker mortgage loan you now have. Any additional funds required to purchase your new home will be provided through a separate mortgage loan.
If, before the tracker end date, you choose to move from your Tracker for Movers interest rate, for example to choose a fixed rate option, you will not be entitled to move back onto a Tracker for Movers interest rate.
If you keep the home you now live in and intend to let it out, you cannot keep the tracker rate from the tracker mortgage loan you now have: we will move you to our normal investment property mortgage rates instead.