If you are an existing AIB mortgage customer with a tracker interest rate mortgage and you want to sell your existing home and buy a new one, see how Tracker Retention could work for you.
If after reading the information on this page and in AIB Mortgages Helping you move home brochure, you feel Tracker Retention could be for you, or if your have any queries, please phone 1890 724 724. Our trained team will be happy to answer all of your questions and go through the application process with you.
Key Features and Eligibility requirements
Tracker Retention is only available to existing AIB mortgage customers with a tracker interest rate on their principal private residence and who are not experiencing difficulties making their existing mortgage repayments
The amount of your new mortgage loan that can avail of Tracker Retention will be limited to the balance of your existing tracker mortgage loan, at the time of application for the new mortgage loan
You can only avail of Tracker Retention for the amount of time remaining on your existing tracker mortgage loan(s) at the time of application, subject to AIB’s maximum age. i.e:
- Subject to clearance by your 66th birthday (or subject to documentary confirmation of retirement age of 70)
- or if you are self employed by your 71st birthday
The new tracker interest rate will be your existing tracker interest rate plus an additional margin of 1% Any additional mortgage amount required to purchase your new home will be at the prevailing AIB new business rate
Your new mortgage loan may only be used to purchase a new home which is to be used as your primary private residence
If you have more than one AIB mortgage on a tracker interest rate secured against your home, Tracker Retention will be based on:
the total balance outstanding on all of your AIB tracker mortgage accounts;
the longest term remaining on your existing tracker mortgage accounts; and
the lowest tracker interest rate applicable to your tracker mortgage accounts (plus an additional margin of 1%).
Your existing home must be sold and your existing mortgage account must be cleared in full before you can draw down your new mortgage
The full sale proceeds of your existing home must be used to repay your existing mortgage
You will need to pay any costs which may occur from the sale of your existing home and the purchase of your new home (including professional fees)
If you choose to convert the tracker interest rate to an alternative interest rate (e.g. fixed interest rate), at a later date, you will not have the option to revert back to the tracker interest rate
You will only be able to avail of Tracker Retention once during your relationship with AIB as a mortgage customer i.e. you will not have the option to retain your tracker interest rate again for a subsequent house move
If you are approved for a new mortgage and Tracker Retention, a Letter of Loan Offer will be issued to you. The Letter of Loan Offer will be valid for 6 months, after which time you will need to make a new mortgage application, which will be subject to AIB standard lending criteria and terms and conditions
If you have sold your home and cleared your mortgage loan, to remain eligible for Tracker Retention, you must reapply for Tracker Retention within 30 days of the expiry of the Letter of Loan Offer. This is subject to AIB still offering the Tracker Retention at that time If you and your co-borrower wish to sell your existing home, buy new homes separately from each other and avail of Tracker Retention, you will each only be able to avail of Tracker Retention in respect of half of the balance of your existing joint mortgage. If your coborrower does not wish to buy a new home and avail of Tracker Retention then you may be able to avail of Tracker Retention in respect of the entire balance of your existing joint mortgage but only if your co-borrower agrees to waive their entitlement to Tracker Retention (a Tracker Interest Rate Retention Waiver must be signed).
This may seem complicated, if you have any questions please phone 1890 724 724, our mortgage advisor will answer any questions you may have
If your existing mortgage is in your sole name and you wish to sell your home and apply for a new joint mortgage with a co-borrower so that you can buy a new home together, you may apply for Tracker Retention subject to the key features and eligibility requirements outlined above
Up to 80% LTV finance is available to you towards the purchase price of your new property with a max LTV 75% for one-bedroom properties.
How to apply
Applying for Tracker Retention is very similar to our normal mortgage application process. Some of the key steps are outlined below:
If your home is currently in Negative Equity there is a slightly different route, please take a look at the Negative Equity Mover web page or the Negative Equity Mover section in the “AIB Mortgages helping you move home” brochure.
Review & approve
We will review your mortgage application and if your new mortgage is approved, we will provide you with a Sanction in Principle letter. This is when your bank agrees, in principle, to give you a mortgage, based on the information you’ve provided. This letter will also confirm that you are eligible for Tracker Retention.
Selling your home
Remember, selling your existing home may take time. It will be a condition of the new Letter of Loan Offer that your existing property is sold and your mortgage cleared in full prior to draw down of the new loan so ensure you have the property on the market in good time. You will need to pay all legal, moving
and auctioneering fees (these cannot be deducted from the sale proceeds). If you have a fixed interest rate mortgage account an early breakage cost may need to be paid by you.
Buy your new home
So, you have sold your old house and found a new home to buy. Your new home will have to be valued, at your own cost, by an independent valuer from the AIB Residential Mortgage Valuers panel. The valuation report must be dated within four months of the date of the drawdown of funds, otherwise you maybe required to obtain a new valuation. AIB has agreed with the panel a fee of €150 for the initial valuation and €65 for any subsequent valuations should they be required.
Once the property and valuation are accepted by us, we have carried out a full loan
assessment and you meet our standard lending conditions, you will be given a Letter of Loan Offer outlining the conditions and mortgage approval.
The currency of your loan and repayments will be euro. If the currency of (some of) your income or assets you intend to use to repay the mortgage loan is not euro, and/or you live in a European Economic Area (EEA) state that is not in the euro zone, the mortgage loan is a foreign currency loan.
You should be aware that fluctuations in the relevant currency exchange rates may affect the value of your outstanding mortgage balance and/or your repayment. This could mean that you may find it difficult to afford your mortgage repayments.
We can only facilitate one non-euro currency per mortgage application
Your new mortgage
Once the conditions in the Letter of Loan Offer have been met we will forward the money to your solicitor to complete the purchase of the new property.