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Banks Cost of funding a mortgage

TheBlaaMan · 2013-05-28 14:30:42

Not sure of the correct term for this, so bear with me. I have a Tracker Mortgage (happy days) with AIB taken out in early 2002 - and am curious as to the merits of offering them a settlement figure if I take a voluntary severance deal from my employer. I know that they are looking to buy people out of trackers, but is it…

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28-05-2013 3:30pm

#1

TheBlaaMan

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Join Date: July 2010

Posts: 3137

Not sure of the correct term for this, so bear with me.

I have a Tracker Mortgage (happy days) with AIB taken out in early 2002 - and am curious as to the merits of offering them a settlement figure if I take a voluntary severance deal from my employer.

I know that they are looking to buy people out of trackers, but is it to possible to establish (even approximately) the true cost to AIB of borrowing the money on international money markets to give to me over the term of the mortgage? I suspect its a lot more than the rate I'm paying them, so it may be in their interest to strike a deal. Is this simply the Inter-bank Rate?........currently about 2.2% for medium term money (can see any references to longer then 2 years) ?

TIA

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