Tracker Mortgages - paying off early

nye2006

Does anyone know if the banks have ever offered incentives for people to pay off their tracker mortgages early? We've a tracker and have the option of clearing it off by up to 90% and wondering if it would be worth approaching the bank to see if they'd discount our mortgage? Hope that makes sense!

beechwood55

PTSB had something a few years ago. It was short lived and no other bank offered a similar product. Ask the question by all means but be prepared to be told no.

NIMAN

Unlikely, especially if you are a performing loan.

I asked BoI a few years back was there any deals going to get off my tracker, as many people were saying you'd get one.

They said no chance.

_Brian

If as they say they are loosing their shirts why not do a deal and walk away ?

Boardnashea

If they were worried that your circumstances had changed (for the worse) they may be more open to discussing settlement.

Boardnashea

https://www.independent.ie/business/personal-finance/charlie-weston-vulture-funds-discount-makes-trackers-even-better-value-35443187.html

Charlie says you should be getting a 40% discount to give up your tracker. However the last line is the stumbling block... "If you have a tracker, the bottom line is that should accept nothing less than a 40pc discount on the loan if someone wants you to give it up".

NIMAN

I rarely listen to anything Charlie says.

poolboy

I asked BOI this time last year and under no circumstances would they accept anything less than the full amount.

CeilingFly

Ptsb placed a bond and achieved a negative interest rate of about -0.3%

A 1% tracker gives them a 1.35% gross profit on their cost of funds.

Considering ptsb are not rated as high as boi or aib, you can be certain that trackers are now profitable, just not ads profitable as other loans.

So I can't see any deals

nye2006

If we paid 100% off do you think they'd bite then??

CeilingFly

nye2006 wrote: »

If we paid 100% off do you think they'd bite then??

Why? Trackers are profitable. Ecb throwing money at the market. You obviously have a good financial record. Your tracker is a earning loan for them

NIMAN

Considering in every mortgage the homeowner will pay a lot more than they borrow over the lifetime of it, why would they offer you a deal to end it?

They'd rather you paid every month for 25 or 30 years.

poolboy

nye2006 wrote: »

If we paid 100% off do you think they'd bite then??

Nope. As I was told "if you're in a position to pay it off 100% in one go then you're in a position to pay it off over x number of years as agreed. Either way they get 100%. The idea that trackers don't make money for banks is false, money has been consistently cheaper for them than for you on your tracker for years now