Negative equity loans plan

Bank of Ireland’s new negative equity home loans will cost customers their valuable tracker mortgages, unless they are already in the bank’s mortgage arrears resolution programme.

The new mortgages are being introduced to allow mortgage holders to downsize or move home, but doing so will cost customers with performing mortgages their trackers.

Tracker mortgages have been costing banks millions as the rates borrowers are paying them are below the bank’s funding costs. The average tracker mortgage is worth about €50,000 to the borrower, the Irish Broker’s Association states.