Ulster Bank Allows Portable Tracker Mortgages

Ulster Bank said today it is offering existing borrowers who wish to move home the option of keeping their existing tracker mortgage rate when they buy a new house.

Ulster Bank are hoping  to aiming to double their  mortgage lending in 2012 .
Thay said that whilst  market demand remains relatively low, Ulster Bank has seen increased activity from those looking to return to the housing market.

Ulster Bank will allow home owners who increase their mortgages in buying a new home to keep their existing tracker rate for the amount equivalent to their existing mortgage, according to today’s statement. Any additional borrowing is subject to the bank’s new business rates.

Many people on tracker mortgages are on rates of ecb plus 1% (or lower)  –  which equates to 2% at the moment.  Moving house could mean shifting to a rate of  5% or more . (a 150% increase )

According to Ulster Bank, the portable tracker deal will only be available to Ulster Bank residential customers who are up-to-date with their existing mortgage payments.