Ulster customers can take trackers with them

Wednesday 05 December 2012 12.36
Customers were reluctant to move because of fears over loss of tracker
Customers were reluctant to move because of fears over loss of tracker

Ulster Bank is to allow homeowners who have a tracker mortgage to keep its benefits when they move home.

Ulster Bank has announced a new initiative designed to allow homeowners who have a tracker mortgage to keep its benefits when they move home.

The bank says the scheme is the first of its kind to be offered in Ireland.

It says it will be made available to customers seeking to move, whether upgrading to a larger family home or trading down.

Jim Ryan, head of branch banking at Ulster Bank said some customers may have been reluctant to move until now for fear that they would lose their tracker mortgage.

He said Ulster Bank was aiming to double its mortgage lending this year, and had seen increased activity from people looking to return to the housing market.

If customers are upgrading their home and increasing the overall amount of mortgage borrowing, they will be able to keep their existing tracker mortgage rate for an amount equivalent to their existing tracker mortgage balance. Any extra borrowing, however, will be subject to Ulster Bank's new business rates.

If a customer is interested in reducing their overall borrowing by trading down, the option to move their tracker rate to their new home is also available.

The option is available only to tracker mortgage customers who are up-to-date with their existing mortgage payments. Those in negative equity will also be ineligible.