A new mortgage arrangement from Permanent TSB is set to allow home owners to purchase elsewhere while still retaining their attractive tracker mortgage.
The scheme – to be announced today – will be a welcome move for customers who which to trade up and move home without sacrificing a lower cost mortgage.
Under the landmark plan, mortgage holders will have to pay an extra 1pc for the full term of the loan but will be able to take that loan with them.
Trackers rates are generally set at 1pc above the European Central Bank (ECB) rate.
Around 375,000 residential mortgages are trackers – and a number of these households have decided not to move for fear they would lose their cheaper mortgage.
Other lenders in the market – AIB and BOI – are believed to be considering similar options for their customers.
This latest decision by PTSB is expected to add pressure for them to come up with a solution for their own ‘tracker generation’ customers.