Mortage Question

Browning

I hope to be in a position to pay off my mortage by the end of this year. If I approach my mortage provider and offer to pay off early is there any chance I may get offered a reduced figure for early settlement. I am on a variable mortage and have €100K+ owing with 10 years left to go.

Former Former Former

I doubt it.

We heard anecdotes about this when banks were losing money on tracker loans. If you're on a variable rate, you are paying market interest so they are making a profit on your mortgage, so why would they incentivise you to pay off early?

phormium

Not a hope! You're doing them out of income, why would they.

Str8outtaWuhan

You'll make more over the next 10 yrs investing the 100+k .

Geuze

https://www.boards.ie/discussion/2058310652/mortage-question

No.

Jim2007

https://www.boards.ie/discussion/2058310652/mortage-question

As in the case of all negotiations, it comes down to what's in it for them? They have a certain projected profit from the deal and when you exit early there are usually some fees charged to collect at least some of that expected profit. So any reduction would come out of their profits and you'd need to come up with a good reason to motivate them into giving you a break.

You can always ask, but I'd have low expectations of a good out come. You should also be careful that any write down does not impact your credit report.