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Paying in to a Tracker Mortgage

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  • 27-02-2014 4:30pm
    #1
    KierKenn
    Registered Users Posts: 38 ✭


    Has anyone seen any sign of banks being willing to come to a reasonable mutual agreement with holders of tracker mortgages who are willing to pay off a lump sum or the entire mortgage, thus saving the bank very much money?


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    #2
    veryangryman
    Registered Users Posts: 5,574 ✭✭✭veryangryman


    KierKenn wrote: »
    Has anyone seen any sign of banks being willing to come to a reasonable mutual agreement with holders of tracker mortgages who are willing to pay off a lump sum or the entire mortgage, thus saving the bank very much money?

    You can either increase your scheduled payments (apply in writing or online if your with PTSB) or just transfer money to the account as you would any normal bank account.If you have the cash, throw it in sure.


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    #3
    KierKenn
    Registered Users Posts: 38 ✭KierKenn


    No this isn't what I am getting at. Maybe I didn't make my question clear.
    Does anyone have a sense that banks are willing to reduce outstanding debt in return for additional early payment into the mortgage. This is very beneficial for the banks as it will save them a lot of money. Thus, they need to incentivise it by offering a debt reduction. Anyone have any good luck in this regard?


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    #4
    phormium
    Registered Users Posts: 3,340 ✭✭✭phormium


    I talk to a lot of people in banking and related debt areas and have yet to come across a case where the bank gave a discount to anyone to clear a tracker other than the PTSB incentive last year.


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    #5
    veryangryman
    Registered Users Posts: 5,574 ✭✭✭veryangryman


    KierKenn wrote: »
    No this isn't what I am getting at. Maybe I didn't make my question clear.
    Does anyone have a sense that banks are willing to reduce outstanding debt in return for additional early payment into the mortgage. This is very beneficial for the banks as it will save them a lot of money. Thus, they need to incentivise it by offering a debt reduction. Anyone have any good luck in this regard?

    I doubt it (nobody i know has had such success in negotiating same). But obviously with compound interest, you do save some money by paying early.


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    #6
    KierKenn
    Registered Users Posts: 38 ✭KierKenn


    it strikes me as a no-brainer for a bank. They would save so much money if they were willing to compromise on the level of debt to be repaid in tracker mortgages


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    #7
    murphaph
    Registered Users Posts: 19,020 ✭✭✭✭murphaph


    KierKenn wrote: »
    it strikes me as a no-brainer for a bank. They would save so much money if they were willing to compromise on the level of debt to be repaid in tracker mortgages
    Depends how interest rates move in the coming 10, 20 years!


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    #8
    Oral Surgeon
    Registered Users Posts: 3,240 ✭✭✭Oral Surgeon


    KierKenn wrote: »
    it strikes me as a no-brainer for a bank. They would save so much money if they were willing to compromise on the level of debt to be repaid in tracker mortgages

    By paying the debt off early, you are saving all of the interest on the loan, that is a significant incentitive for you to pay off your loan early. Why should the bank discount the capital amount too to help you out even more??

    If you are in a position to pay off a mortgage early then I would say that the bank's debt forgiveness is better used elsewhere as you dont need it.....


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