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Tracker mortgage writedown?

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    #32
    makeorbrake
    Registered Users Posts: 4,664 ✭✭✭makeorbrake


    gaius c wrote: »
    .. you won't get everything you want so if you work out that the bank will lose €100k over the lifetime of the tracker, you can't just demand a €100k discount in return for paying it back early and expect to be taken seriously because in order to get that future €100k loss off their books, they'll have to take a short term hit in one go.

    Yeah, and that's exactly the reason why people should hold on to their trackers regardless of any potential deal - as any such deal will come up short of its true value.


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    #33
    cerastes
    Closed Accounts Posts: 3,601 ✭✭✭cerastes


    gaius c wrote: »
    That's the wrong way to look at it. They are under no obligation to offer you anything and if they want to carry on losing money on your mortgage, that's their call. Too many people seem to have the attitude of "just give me a discount of my choosing now" when the better approach is to ask nicely for the discount and once you have that answer in the affirmative, it's just a business negotiation.

    Like any business negotiation, you won't get everything you want so if you work out that the bank will lose €100k over the lifetime of the tracker, you can't just demand a €100k discount in return for paying it back early and expect to be taken seriously because in order to get that future €100k loss off their books, they'll have to take a short term hit in one go.

    But the banks arent prepared to meet anyone even halfway, they offer either no or a paltry amount regarding writedowns, or simply try persuade the customer against their best interest to change, they will rather cut off their nose to spite their face than have something or even most of it now rather than make a reasonable offer. They are probably waiting incase they might write it off themselves at a better value later maybe if people are worse off.

    If they arent meeting customers halfway, not anywhere near it, they should stop protesting and complaining about it, they may or may not be profitable but it is of their own doing and at the same time try justify crucifying SVR holders.


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    #34
    Crimsonforce
    Registered Users Posts: 1,661 ✭✭✭Crimsonforce


    Quin_Dub wrote: »
    They would want to be offering a significant write-down for it to be profitable for you.

    In various articles written by economists etc. I have seen them suggesting anything from 30%-40% as being the sort of discount required for the customer to be coming out on top.

    If you have the funds available to clear it , they are likely making more money that the interest you are paying on the mortgage..

    Depends on your specific needs , but personally (I have a tracker too) I'd be looking for them to accept something in the 70k-80k range as the final pay-out on a 110k mortgage..


    How do you think I should approach and engage the bank or i believe it is a company called certus who are now running the assets on behalf of BOSI
    should I call or formally write to them..


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    #35
    Quin_Dub
    Moderators, Politics Moderators, Social & Fun Moderators Posts: 15,546 Mod ✭✭✭✭Quin_Dub


    gaius c wrote: »
    That's the wrong way to look at it. They are under no obligation to offer you anything and if they want to carry on losing money on your mortgage, that's their call. Too many people seem to have the attitude of "just give me a discount of my choosing now" when the better approach is to ask nicely for the discount and once you have that answer in the affirmative, it's just a business negotiation.

    Like any business negotiation, you won't get everything you want so if you work out that the bank will lose €100k over the lifetime of the tracker, you can't just demand a €100k discount in return for paying it back early and expect to be taken seriously because in order to get that future €100k loss off their books, they'll have to take a short term hit in one go.

    I agree - Using "offering" above was perhaps a poor choice of wording in the context

    My point was that when you are negotiating and doing the necessary dance with them the 30%+ figure should be one that you hold on to and I would if the negotiations weren't getting into that Ball-park I'd be walking away..


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