Mortgage tracker to follow movers

Mortgage customers will be able to retain their tracker mortgages if moving home, thanks to a new product announced by AIB yesterday.

Customers will pay an additional 1% on top of their existing tracker mortgage rate as part of the ‘Tracker Interest Rate Retention’ offer launched by the bank which is applicable as of today.

Customers in positive or negative equity will be able to avail of the new product which Irish Mortgage Holders Organisation director David Hall says should be welcomed for allowing people to move homes.

“Any product that allows someone to move and bring their tracker with them has to be welcomed.

“If I was writing the product there would be no fee applied but... the cost up to this has been much greater,” said Mr Hall.

Any additional funds customers wish to borrow will be at the prevailing business rates, according to the bank.

AIB also unveiled an expanded negative equity mover offering which will incorporate customers looking to purchase a new home of equal or lower value than that of their existing home.

The product which was designed to help customers transfer the remaining negative equity on their current home to a new mortgage, previously applied solely to those looking to “trade up”.

AIB head of mortgage business development, Michael Quirke said yesterday’s announcement shows the bank’s support of customers looking to move home.

“In the first quarter of this year mortgage drawdowns at AIB were up 50% year on year.

“These enhancements to our mortgage offerings further underline our commitment to supporting the residential property market and our customers who are considering moving home.

“We are also delighted to support new mortgage customers and we have very competitive offerings available” said Mr Quirke.

However, Mr Hall said that he would like to see the new products retrospectively applied to customers who have made similar moves in the last 12 months.

Revised fixed mortgage rates were also announced by AIB yesterday, including cuts to its one and five year fixed rates.