Move home with a tracker mortgage?

Irish home owners with tracker mortgages have enjoyed mortgage interest rates that are at a record low and some people have saved thousands of euros in the process. Naturally, homeowners who have favourable rates are nervous about losing out if they ever decide to move home.

But there is no need to feel trapped by your tracker. That one bedroom flat you bought as a First Time Buyer doesn’t have to be your family home for the next 20 years.AIB offers a number of options that will allow you to trade up to a home more suitable for your lifestyle and still benefit from a tracker rate. Read on for the three questions most home movers with a tracker mortgage ask.

Can I keep my tracker mortgage if I move?

Yes. If you’re an existing AIB customer with a tracker interest rate mortgage, you can keep your tracker mortgage even if you sell your current home and move to a new property. This means that you can still reap the benefits of being on a tracker mortgage but can move to a more suitable home if you’ve outgrown the one you’re in.

So how does Tracker Retention work then?

The new tracker interest rate will be based on your current rate with an additional margin of 1%. Choosing to get Tracker Retention on the mortgage for your new home is pretty straightforward although prospective buyers will have to tick a few boxes to qualify.

Tracker Retention will only be available only on a customer’s main private residence. When you get a new mortgage loan, you will be able to get Tracker Retention only on the balance that is left on your existing tracker mortgage loan. Any additional mortgage amount that is needed will then be based on AIB’s current new business rate. The offer will apply only to customers who have no difficulties with their current repayments.

For more information on eligibility, check out the Features and Benefits of Tracker Retention.

Should I choose a tracker mortgage or a fixed-rate mortgage?

Getting a mortgage is a big commitment so you need to choose which mortgage is the right one for you. There are a number of factors that might influence you when choosing whether to retain your tracker mortgage or move to a fixed-rate mortgage.

A tracker mortgage uses the European Central Bank rate as a reference point so the mortgage holder enjoys lower rates during times of low or falling interest rates. This means that your rate can be affected only by economic change. However you could end up paying more if the interest rate rises after you take out your mortgage.

A fixed-rate mortgage is pretty self-explanatory. Your lender offers you a set rate for the fixed term and you get the benefits of knowing exactly what your mortgage will cost over that time, regardless of interest rates. Whatever is happening in the world economy, your mortgage interest rate will stay the same.

Choosing which option to take is a major decision and you’ll need to decide which one suits you if you want to transfer your existing mortgage to a new home.

Talk to us about your tracker mortgage options

If you feel that Tracker Retention is for you, or if you have any queries, please phone 0818 724 725, as you will be unable to apply for Tracker Retention in your Branch. Our trained team will be happy to answer all of your questions and go through the application process with you.

Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to origination and servicing of mortgage loans and mortgages. AIB Mortgage Bank and Allied Irish Banks, p.l.c. are regulated by the Central Bank of Ireland