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TRACKER MORTGAGE write some off it ?

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  • 06-04-2011 3:13pm
    #1
    falabo
    Registered Users Posts: 651 ✭✭✭


    bought a place in 2007 for 265k
    I still owe circa €250k over 32 years
    tracker mortgage ECB + 1.1%

    Still have a French account and bank willing to lend me €150 unsecured at 4% over 20 years. I have 40k in savings.

    if I approached PTSB and told them I was in a position to clear most of the mortagge would they offer me a deal. they would have to write off 60k

    would it nost cost them more in the long run to keep me for 32 years on the tracker ?


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    #2
    dotsman
    Registered Users Posts: 3,636 ✭✭✭dotsman


    falabo wrote: »
    bought a place in 2007 for 265k
    I still owe circa €250k over 32 years
    tracker mortgage ECB + 1.1%

    Still have a French account and bank willing to lend me €150 unsecured at 4% over 20 years. I have 40k in savings.

    if I approached PTSB and told them I was in a position to clear most of the mortagge would they offer me a deal. they would have to write off 60k

    would it nost cost them more in the long run to keep me for 32 years on the tracker ?

    I don't see why they would. Yes trackers are costing them a lot of money at the moment, but they won't always. Over 32 years, they will still make a profit.

    But, more importantly, yours is a performing loan. one of they big things in all this is ratios. They need to, not only, A) reduce their loan book, but B) reduce the percentage of their loan book in arrears.

    Ultimately, it's probably better to continue making a small loss (a few grand) on you each year over the next few years, than make a large loss (60 grand) on you now, and end up with a "worse" loan book.

    Finally, their is also the situation that within a year or 2 (after a few ECB rate hikes), chances are it will be more beneficial for you to pay a lump sum off your mortgage than have it tied up in savings (at a lower rate). Thus it would be foolish of them to write anything significant off now.


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