Discount for paying off Tracker

kapa

Does anybody know if the Permanent TSB are still giving a discount if you pay a lump sum off a tracker mortgage or if you were to pay it off what discount if any should you look for. My sister and her husband are both being made redundant and have a tracker mortgage of €170,000. Do you think the bank would be likely to give a discount or what discount could they ask for in return for clearing it.

NIMAN

They can only ask, and only the bank can truly answer this one. Wish them good luck.

freewheeler

A good friend of mine went to TSB last week to enquire about paying off her tracker mortgage.
She was told they dont do individual offers, and they dont know if or when any 'deals' are likely!
I know they may be transferring all their tracker mortgages to the new Anglo Irish bank -IBRC?
I dont know if this will change anything.

I would like to hear how your friends get on..
There is nothing to lose by asking!

kapa

thanks guys, they are going to the bank of Tuesday, I will let you know how they get on.

rcdk1

That "offer" was due to end June 2011
http://www.rte.ie/news/2011/0418/ilp-business.html

kapa

Freewheeler, they got the same reply as your friend. Nothing doing

killers1

kapa wrote: »

Freewheeler, they got the same reply as your friend. Nothing doing

Banks are not doing deals on performing loans. The only times they will possibly agree to part of the capital outstanding being written off is where the loan is in serious arrears & there is little/no chance of the capital outstanding being recovered & they've agreed to the sale of the property at a much lower price than the loan amount outstanding.

NIMAN

Strange that they wouldn't offer some kind of deal, even on performing tracker loans.

We are told they are losing money on them, so surely even a small discount for owners to pay it off, might be worthwhile.

kapa

Maybe if the IBRC take over the trackers, they will offer something??? If this is going to happen, you would imagine that it wont be long. It might be worth while sitting tight for a while.

killers1

NIMAN wrote: »

Strange that they wouldn't offer some kind of deal, even on performing tracker loans.

We are told they are losing money on them, so surely even a small discount for owners to pay it off, might be worthwhile.

ptsb did for a while last year where there was a small window of opportunity to reduce your capital and they would add a further % to the amount being paid off. I'm sure the 'losses' on trackers have been factored in previously by the Banks when advising the Government how much funds they needed to be bailed out by and now the important thing is that those low tracker rates are performing loans as the 'losses' have already been taken into account to some degree.

freewheeler

kapa wrote: »

Maybe if the IBRC take over the trackers, they will offer something??? If this is going to happen, you would imagine that it wont be long. It might be worth while sitting tight for a while.

Read in the papers the other day that PTSB are trying to bargain 'reducing their high interest rates' with 'the take over off their trackers'. They are saying they wont reduce their rates till their trackers are taken off their hands (bascially these higher rates are paying for their losses on trackers)

Seemingly the paper said however the take over off trackers could take months ?? (So those on high interest rates will have a while to wait for reduced payments.)

@Kapa....do your friends/relations think they will hold out, or pay up now?

Seems you could be loosing money paying interest on your monthly payments while waiting, just on the off chance that you may get a deal off the new owner of the trackers in god knows how many months down the road ??

Would be very interested in knowing what you realtives decide as my friend is trying to decide what to do??

kapa

thanks Freewheeler, I'll let you know how it pans out