Can We Cash in our Tracker Mortgages ?

Tail Wagger

Hi there guys, I was having a couple of pints with the lads on Sunday and the old story came up about Mortgages.

One of the guys was saying that people who are on tracker Mortgages are being offered money from their lenders to buy them out.

Story goes if you have a tracker the banks are offering you up to €5,000 to go onto a normal Mortgage, he said he was advised to hold on as the offer may go up to €10 - €15 K, has anyone heard of this talk of offers, or is this the new gimmick doing the rounds.. any response?

flanzer

I don't know what a tracker mortgage is?

Celly Smunt

flanzer wrote: »

I don't know what a tracker mortgage is?

i was waiting on that

Tail Wagger

Tail Wagger wrote: »

Hi there guys, I was having a couple of pints with the lads on Sunday and the old story came up about Mortgages.

One og the guys was saying that people who are on tracker Mortgages are being offered money from their lenders to buy them out.

Story goes if you have a tracker the banks are offering you up to €5,000 to go onto a normal Mortgage, he said he was advised to hold on as the offer may go up to €10 - €15 K, has anyone heard of this talk of offers, or is this the new gimmick doing the rounds.. any response?

If it's good for the banks then it's bad for you, keep the tracker. They cost the banks money and you get a cheap mortgage.

3DataModem

15 grand is probably a very bad deal, unless you plan to sell soon!

DeVore

Tracker mortages effectively "float" 0.5% above the ECB rate. The problem is that the local banks are paying more then that to maintain the loans now. So, they would really really really like you to ditch the tracker mortage in favour of a regular mortage.

Personally, I wouldnt do it in a million years but I'm not a financial advisor and unless they clearly state otherwise, neither is anyone else in this thread.

DeV.

jd007

flanzer wrote: »

I don't know what a tracker mortgage is?

It had to be done.

ctrl-alt-delete

Don't give up your tracker mortgage, unless the sum being offered is between 20-25% of the initial sum of the mortgage. That is what i have heard from an "expert" in the field.

Sergeant

OP, get advice from an independent financial advisor. Hearsay and opinion are of little use in the biggest financial transaction of your life.

fontanalis

Really, ask yourself do the banks care about you or themselves more?

Praetorian Saighdiuir

Which bank is offering these???...........




........mmmmmm

donkey balls

DeVore wrote: »

Tracker mortages effectively "float" 0.5% above the ECB rate. The problem is that the local banks are paying more then that to maintain the loans now. So, they would really really really like you to ditch the tracker mortage in favour of a regular mortage.

Personally, I wouldnt do it in a million years but I'm not a financial advisor and unless they clearly state otherwise, neither is anyone else in this thread.

DeV.

according to the financial guy that does be on the last word with matt cooper he has told people not give up the tracker their mortcage, even if the banks offer 15k+ as the tracker mortcage will save someone on a 300k mortcage 60-80k over the life time of the mortcage.

starbelgrade

I would cash in if I were you. What the banks are offering is a very generous lump sum to help you in your daily life, as they are really nice & giving people who care deeply about you & worry that you may not have enough money in your pocket to go on a nice holiday this year & buy a nice frock for the missus.

Thoie

ctrl-alt-delete wrote: »

Don't give up your tracker mortgage, unless the sum being offered is between 20-25% of the initial sum of the mortgage. That is what i have heard from an "expert" in the field.

I did my own sums (not a financial expert) and determined that they'd need to give me roughly 50-75% of the value of my mortgage in order to make it worth my while. Obviously they're never going to do that, so we're at an impasse

Your own personal circumstances will obviously be different from mine, but do your sums first, and try out different scenarios of interest rates before signing anything.

ctrl-alt-delete

ctrl-alt-delete wrote: »

Don't give up your tracker mortgage, unless the sum being offered is between 20-25% of the initial sum of the mortgage. That is what i have heard from an "expert" in the field.

+1

Just do the maths! you'll be surprised just how much you could be saving by keeping the tracker.

stepbar

Show us your calculations.

galwayrush

flanzer wrote: »

I don't know what a tracker mortgage is?

Looks like the Banks didn't fully understand what they were either.:pac::pac:

DeVore

Also considering that interest rates are quite likely to rise, and possibly steeply, I would be getting a fixed rate mortgage if I was daft enough to sell a tracker mortgage to the banks.

Banks dont create anything, if they are selling you something, its because its bad and they dont want it any more. (mostly)

DeV.

stepbar

stepbar wrote: »

Show us your calculations.

http://www.mortgage-calc.com/mortgage/simple_results.html


Just use this simple calculator, once with your tracker rate and again with your new fixed rate.

earlyevening

I suppose it depends on how much you owe on your tracker.

If your mortgage is only say, 50000 then deffo taking the 15000 is worth it. If its massive and you would eventually pay more interest on a variable, then forget it.

(Im sure there are terms and conditions which stop you taking the bribe if you have a "small" mortgage.

Fizman

Tail Wagger wrote: »

Hi there guys, I was having a couple of pints with the lads on Sunday and the old story came up about Mortgages.

I'd say ye are some crazy group of lads to go out for a few drinks with! :pac:

Hardcore sh1t right there man! Women falling off ye with yer smooth pillow talk I reckon.

dubtom

A guy on Kennys show last week said tracker holders would be insane or stupid to give it up unless they were offered in the region of €75000. I can't see that happening though. I have one and tbh I'm not laughing all the way to the bank,the european rate will go up and up eventually. If I remember correctly it was dropping ¼ and ½% every couple of months not so long ago. We'll be lucky if it doesn't go up in full percentage points each time.

dubtom

dubtom wrote: »

A guy on Kennys show last week said tracker holders would be insane or stupid to give it up unless they were offered in the region of €75000. I can't see that happening though. I have one and tbh I'm not laughing all the way to the bank,the european rate will go up and up eventually. If I remember correctly it was dropping ¼ and ½% every couple of months not so long ago. We'll be lucky if it doesn't go up in full percentage points each time.

And the banks will up their variable rates almost immediately!

Unfortunately, the shops out of crystal balls, so it's impossible to say what the best fixed rate would be.

anniehoo

Im on 5.65% fixed since 07 (yeh i was the sad cow who hopped on the dodgy ladder).Not grumbling so its ok.

The rate is fixed until Oct this year.Still trying to figure out/understand what the bank or im allowed to do?

I honestly dont know whether im "allowed" to fix again or have to go tracker. Can anyone shed any wisdom

Bottle_of_Smoke

I'd stick with the tracker. Fixed they'll only offer you it for a few years then you're on variable.

A mortgage is a very long term loan. Variable is the banks way of raping you. They'll knock the price up immediately if the ECB increase the price and they'll take it down slowly or not at all if the ECB goes down. Over the next 25 years the ECB rate will go up and down. Go variable and you'll be paying well above the rate at any given point. You know where you stand with a tracker because it will always be linked directly.

Come on this is the banks we're dealing with. If they're givng you 5K its not for no good reason.

i57dwun4yb1pt8

i peeeece on zer measly 5k

make it 100 k , and maybe I will at least fart in their general direction

Kristopherus

anniehoo wrote: »

Im on 5.65% fixed since 07 (yeh i was the sad cow who hopped on the dodgy ladder).Not grumbling so its ok.

The rate is fixed until Oct this year.Still trying to figure out/understand what the bank or im allowed to do?

I honestly dont know whether im "allowed" to fix again or have to go tracker. Can anyone shed any wisdom

You wont get a tracker now. They are a no no with the banks at present, because they are losing money on tracker mortgages.

Thoie

anniehoo wrote: »

The rate is fixed until Oct this year.Still trying to figure out/understand what the bank or im allowed to do?

I honestly dont know whether im "allowed" to fix again or have to go tracker. Can anyone shed any wisdom

Probably a better question for the banking forum, but you probably can fix again in October for another 2/3/5 years if you want to. Remember you can also leave that bank and go to another one (if they'll take you).

Best thing is to work out how much of your mortgage is left, and what's the rough current value of your home. You have a better chance of going to a different bank if the value of your home is less than the outstanding mortgage.

Take a look now at what rates various banks are offering, and if you see one you like, give them a call. It can take a few months sometimes for the mortgage switching paperwork to complete, so start looking around now.

Hannibal Smith

Tail Wagger wrote: »

Hi there guys, I was having a couple of pints with the lads on Sunday and the old story came up about Mortgages.

One of the guys was saying that people who are on tracker Mortgages are being offered money from their lenders to buy them out.

Story goes if you have a tracker the banks are offering you up to €5,000 to go onto a normal Mortgage, he said he was advised to hold on as the offer may go up to €10 - €15 K, has anyone heard of this talk of offers, or is this the new gimmick doing the rounds.. any response?

Contact your bank manager and ask him. I heard something similar alright that they are offering up to 15k. But you'd need to clarify it with you bank.

stovelid

Contact them and say you'll switch for over for an unfeasibly high percentage of your mortgage to be wiped off. Then bargain them down from there.

john hanrahan

this story has been going around for a few weeks but i do't know of any one being offered money to move, i am on a tracker and no one has offered me money.

if they did i would take it as i will probably change house in the near future and would have to get a new mortgage anyway

i don't think there is any evidence of banks offering money its just a story

hopefully not

seamus

http://www.boards.ie/vbulletin/showthread.php?t=2055901471

The general advice here is that unless the bank are offering you a huge sum off your mortgage (>= 30%), or you're planning on selling up and moving anyway, then don't accept any offer to come off your tracker rate.

Banned Account

The right solution for this dilemma depends on the type of person you are. If you were the type who rolled their car loans into the mortgage figuring that you didn't mind paying more over 25 years as long as you improved immediate cash flow, then you will likely be tempted.

If you were the type who refused to do this as you didn't fancy paying €94,365.12c for a nissan micra, then you'll likely stay on the tracker.

The banks will only offer you money if it will save them money, so at least be wary. All rates are likely to rise significantly over the next 3 years or so due to the volume of money that has been printed and the very real fear of large scal inflation, though high interest rates will not last forever.

One thought would be to take the banks money, fix rate for the next 3-5 years using some of the lump sum to pay the increase, then take advantage of (what we would hope to be) cheaper rates in 3 or 4 years time, when we have forgotten all about the credit crunch and become crazy credit bingers once more.

As and end note, if I know Banks (and I reckon I do) they will only offer the deal to those with big balances and in negative equity who are deeply screwed. If you owe €50k, you will not hear from them.

(p.s. I'm a financial advisor)

Tail Wagger

anniehoo wrote: »

Im on 5.65% fixed since 07 (yeh i was the sad cow who hopped on the dodgy ladder).Not grumbling so its ok.

The rate is fixed until Oct this year.Still trying to figure out/understand what the bank or im allowed to do?

I honestly dont know whether im "allowed" to fix again or have to go tracker. Can anyone shed any wisdom

Just seen your post now? For sure you won't be offered a tracker from your lender, thats why there trying to pay people off to get them back on a fixed rate or a flexible rate as these rates are dearer..... I'm currently paying 2.5% on a tracker mortgage