Danske Bank tracker mortgage

Scobyone

Hi,

I have a tracker mortgage of less than 200k which is interest only. It's due to be paid in full in 2027. The monthly payment is small and falls further next month. It's a good news story for me. If I could pay off the mortgage with a lump sum, could I expect to achieve a write down of the amount owing and by how much?
I say this considering DB exit from Ireland and the probable increased cost for them to manage/sell my contract.
And how would I calculate at what point it would make sense?
Any thoughts welcome
Thanks

Oral Surgeon

Scobyone wrote: »

Hi,

I have a tracker mortgage of less than 200k which is interest only. It's due to be paid in full in 2027. The monthly payment is small and falls further next month. It's a good news story for me. If I could pay off the mortgage with a lump sum, could I expect to achieve a write down of the amount owing and by how much?
I say this considering DB exit from Ireland and the probable increased cost for them to manage/sell my contract.
And how would I calculate at what point it would make sense?
Any thoughts welcome
Thanks

I didn't think that they allowed tracker mortgages get away with interest only these days.... Most get pushed into variable etc....

Are you going to sell for less and then try to settle the mortgage??

if not, I would expect if you approached them looking to give €100-150K as a lump, they might wonder why you are on interest only as you could clearly afford your mortgage payments... It might backfire

Scobyone

No, not selling just thinking about clearing mortgage with a lump sum. I took out a 20yr full-term interest only mortgage in 2007. I like the idea of being mortgage free with no mortgage protection or repayment coming out of my income. Presumably there is also the chance that ECB rates may be a lot higher in 5-10 years but my income may not be. If the bank were happy to see the back of me, they might writedown some of the debt to save their pain.

Oral Surgeon

Scobyone wrote: »

No, not selling just thinking about clearing mortgage with a lump sum. I took out a 20yr full-term interest only mortgage in 2007. I like the idea of being mortgage free with no mortgage protection or repayment coming out of my income. Presumably there is also the chance that ECB rates may be a lot higher in 5-10 years but my income may not be. If the bank were happy to see the back of me, they might writedown some of the debt to save their pain.

I'm no expert but I think that it is wishful thinking... I think that they are doing deals for people in distress... You sound like you are more than capable of paying your mortgage. They will argue that you are saving 20 years interest & mortgage protection etc.... by paying the full €200. So why would they give you a discount on the capital too....

Scobyone

I'm thinking they'll discount the debt for a settlement today because to go the full term will cost them a lot more than the discount they will offer. I know it sounds a bit dreamy but thought there might be someone in the industry with a better idea. You can't blame me for looking to shaft the bank? It's a cold business deal, that's all. Love the devilment of it!

skippy2

Interested to see how you get on let us know....................... I tried in a very similar situation with DB and got a straight "NO" we are not doing any deals on Trackers. So have a go and let us know if you get the same reply

Scobyone

skippy2 wrote: »

Interested to see how you get on let us know....................... I tried in a very similar situation with DB and got a straight "NO" we are not doing any deals on Trackers. So have a go and let us know if you get the same reply

Ok, I'll let you know.I'm just waiting on the opinion of a mentor before I do anything.

Liam D Ferguson

Although it may well make commercial sense for Danske Bank to offer you a discount for early repayment of a tracker mortgage, in practice I hear they're not doing so. Several people on this thread have asked and have been flatly refused.

STaN

Scobyone how did you fare with DB?

Scobyone

STaN wrote: »

Scobyone how did you fare with DB?

Hi Stan,
Didn't approach them yet,it's on the agenda for the new year!

Duncelt

Just wondering how you got on. I'm writing to them this week to see about settling. We want to sell our house and are on variable (DB's is now the highest on the market).

Scobyone wrote: »

Hi,

I have a tracker mortgage of less than 200k which is interest only. It's due to be paid in full in 2027. The monthly payment is small and falls further next month. It's a good news story for me. If I could pay off the mortgage with a lump sum, could I expect to achieve a write down of the amount owing and by how much?
I say this considering DB exit from Ireland and the probable increased cost for them to manage/sell my contract.
And how would I calculate at what point it would make sense?
Any thoughts welcome
Thanks

Scobyone

Hi duncelt,

I never actually approached them directly. I did seek advice from a financial advisor and his opinion was that it was not worth trying, so I took his advice and let it go. I still regret a little bit that I didn't even try my luck with them. In the meantime, my mortgage is being managed by some new entity and the monthly payment is so low it's almost embarrassing. The repayment is a fraction of the mortgage protection insurance premium which is annoying me at the moment.
Good luck with your efforts, would be interested to hear your progress. But you say you have a variable rate?

Duncelt

thanks for your response Scoby. Yes I'm on a variable rate and its 4.95%. Its sole destroying the interest that I'm paying. Its working out at about 60% of my monthly payment is for interest. If I could settle for a bit less with them I would sell my house to get rid of it.

Scobyone wrote: »

Hi duncelt,

I never actually approached them directly. I did seek advice from a financial advisor and his opinion was that it was not worth trying, so I took his advice and let it go. I still regret a little bit that I didn't even try my luck with them. In the meantime, my mortgage is being managed by some new entity and the monthly payment is so low it's almost embarrassing. The repayment is a fraction of the mortgage protection insurance premium which is annoying me at the moment.
Good luck with your efforts, would be interested to hear your progress. But you say you have a variable rate?

Trish56

Scobyone wrote: »

Hi duncelt,

I never actually approached them directly. I did seek advice from a financial advisor and his opinion was that it was not worth trying, so I took his advice and let it go. I still regret a little bit that I didn't even try my luck with them. In the meantime, my mortgage is being managed by some new entity and the monthly payment is so low it's almost embarrassing. The repayment is a fraction of the mortgage protection insurance premium which is annoying me at the moment.
Good luck with your efforts, would be interested to hear your progress. But you say you have a variable rate?

So Scobyone why don't you pay principal and interest. Are you in negative equity?