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What would it take for you to give up your tracker mortgage?

2

Comments

  • Registered Users, Registered Users 2 Posts: 1,853 ✭✭✭Glenbhoy


    MMAGirl wrote: »
    True. And if you do a search on boards you will see people saying " interest rates are only going one way" from many years back.

    and they have, but now that they're pretty much on the floor there is only one way they can go.


  • Registered Users, Registered Users 2 Posts: 1,668 ✭✭✭Corkbah


    Glenbhoy wrote: »
    and they have, but now that they're pretty much on the floor there is only one way they can go.

    wrong ...they can ....

    1. stay there
    2. go up
    3. go down even further

    so.... more than one way they can go ..in all likelihood they will remain static for a number of years to come, I don't see them raising for at least 3-5yrs ...and at that it'll be a slow increase.


  • Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,421 CMod ✭✭✭✭Pawwed Rig


    There has been cases of negative interest rates in history. Now while I can't see the ECB going there never say never.
    It reminds me of threads where people claim the property market has hit rock bottom.........................errr has it?
    Noone knows. If we did we could make a killing on derivatives on the Financial markets


  • Registered Users, Registered Users 2 Posts: 484 ✭✭MMAGirl


    Pawwed Rig wrote: »
    There has been cases of negative interest rates in history. Now while I can't see the ECB going there never say never.
    It reminds me of threads where people claim the property market has hit rock bottom.........................errr has it?
    Noone knows. If we did we could make a killing on derivatives on the Financial markets


    Much like all the people wishing for a property crash and when they got it they realized that there is much, much worse that goes along with it, if interest rates went negative I think there would be a lot of other worse things along with that scenario. I really hope we dont go there.


  • Registered Users, Registered Users 2 Posts: 5,201 ✭✭✭ongarboy


    Glenbhoy wrote: »
    and they have, but now that they're pretty much on the floor there is only one way they can go.


    They've been on the floor for years and haven't moved upwards at all. In fact, speculation this week said that a further reduction of 0.25% next month is on the cards - even better news for all the tracker holders. The downside of this is that the savings/deposit rates for non fixed savings also drop when there is an ECB drop.

    The rates will remain low as long as inflation is low and the EU economy is struggling. I understand rates generally only rise to curb overheating of the economy or when inflation spirals upwards dramatically (neither of which is going to happen in the EU anytime soon).


  • Registered Users, Registered Users 2 Posts: 7,879 ✭✭✭D3PO


    pointless discussion IMO.

    Because any "Deal" the bank accepted would only be accepted if its a better option for them financially long term on the mortgage.

    Which then means you will get a bad deal for letting go of your tracker. They aren't going to do a deal that is worse for them than you hanging onto the tracker. Therefore no deal can be don't in your benefit so no deal should be done.


  • Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,421 CMod ✭✭✭✭Pawwed Rig


    Not a pointless discussion. There have been some very informative posts here. What you're saying is correct but if you could imaging a scenario with a person who owes say €100,000 and has €60,000 in the bank. If a bank offered him a write off on some of the capital it might be in his interest to pay off the whole mortgage as the return on his €60,000 in savings would not be high enough to equal the capital gained.

    And pointless discussions can have merit too. I was just over in the Zombie Holocaust Survival forum:D


  • Registered Users, Registered Users 2 Posts: 1,853 ✭✭✭Glenbhoy


    Pawwed Rig wrote: »
    There has been cases of negative interest rates in history. Now while I can't see the ECB going there never say never.
    It reminds me of threads where people claim the property market has hit rock bottom.........................errr has it?
    Noone knows. If we did we could make a killing on derivatives on the Financial markets

    That's really what I'm trying to say, none of us or anyone else out there really has much of an idea. The market moves in mysterious ways and anyone taking a view beyond a year or so is kidding themselves.


  • Registered Users, Registered Users 2 Posts: 7,879 ✭✭✭D3PO


    Pawwed Rig wrote: »
    . What you're saying is correct but if you could imaging a scenario with a person who owes say €100,000 and has €60,000 in the bank. If a bank offered him a write off on some of the capital it might be in his interest to pay off the whole mortgage as the return on his €60,000 in savings would not be high enough to equal the capital gained.

    that scenario wouldn't exist (or at least shouldn't if the person your talking about is financially astute which given the outlined scenario would suggest they are)

    if they had 60k on deposit its because the 60k on deposit even after dirt is yielding more in interest than the same in savings if it were paid off the mortgage principle. Therefore the return you suggest they may get from a deal and paying off the principle with their savings wouldn't exist ;)


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  • Registered Users, Registered Users 2 Posts: 6,733 ✭✭✭Tombo2001


    Again I will ask the question.....

    Has any bank in Ireland.....

    negotiated one single deal....

    .....to get somebody off a tracker mortgage and on to a variable***

    .....and offerred debt writedown in return....

    Is anyone aware of this happening even once?

    I amnt.....

    And yet every couple of months I see this media discussion about how much you would have to get to give up the tracker, as if banks were out knocking door to door beggin people to do this.

    I'd be delighted to negotiate 50k off my mortgage to give up the tracker.

    Its not an option.....its not available......its a fantasy......



    *** and I'm not talking about cases where the mortgage holder cant pay.....thats a different type of deal.


  • Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,421 CMod ✭✭✭✭Pawwed Rig


    D3PO wrote: »
    that scenario wouldn't exist (or at least shouldn't if the person your talking about is financially astute which given the outlined scenario would suggest they are)

    if they had 60k on deposit its because the 60k on deposit even after dirt is yielding more in interest than the same in savings if it were paid off the mortgage principle. Therefore the return you suggest they may get from a deal and paying off the principle with their savings wouldn't exist ;)

    Yeah I know there are alot of assumptions here. The main one being that currently the €60,000 is yielding a higher rate than they are paying on the tracker but yielding a lower rate than would be if the person took the 40K writedown and was moved onto the standard variable (which would be the case in alot of situations).


  • Registered Users, Registered Users 2 Posts: 484 ✭✭MMAGirl


    Tombo2001 wrote: »
    Again I will ask the question.....

    Has any bank in Ireland.....

    negotiated one single deal....

    .....to get somebody off a tracker mortgage and on to a variable***

    .....and offerred debt writedown in return....

    Is anyone aware of this happening even once?

    I amnt.....

    And yet every couple of months I see this media discussion about how much you would have to get to give up the tracker, as if banks were out knocking door to door beggin people to do this.

    I'd be delighted to negotiate 50k off my mortgage to give up the tracker.

    Its not an option.....its not available......its a fantasy......



    *** and I'm not talking about cases where the mortgage holder cant pay.....thats a different type of deal.


    Yes. I know of one person myself who has done it. And if you look on AAM they talk of it happening too.


  • Registered Users, Registered Users 2 Posts: 4,666 ✭✭✭makeorbrake


    Tombo2001 wrote: »
    Again I will ask the question.....

    Has any bank in Ireland.....

    negotiated one single deal....

    .....to get somebody off a tracker mortgage and on to a variable***

    .....and offerred debt writedown in return....

    Is anyone aware of this happening even once?

    I amnt.....

    And yet every couple of months I see this media discussion about how much you would have to get to give up the tracker, as if banks were out knocking door to door beggin people to do this.

    I'd be delighted to negotiate 50k off my mortgage to give up the tracker.

    Its not an option.....its not available......its a fantasy......



    *** and I'm not talking about cases where the mortgage holder cant pay.....thats a different type of deal.
    Yes, the PTSB....not so much " off a tracker " ...they gave (and I'm open to correction here) 10% extra for any capital payment that was made against one of their tracker mortgages.

    Notwithstanding that, I dont expect the banks to make deals with the ordinary joe. They can sell loan books at institutional level for a few cents in the euro - but giving the ordinary joe a break is not how the game is played apparently.


    I'd imagine that they have also ran the numbers and know what % will abandon their tracker to trade up OR for whatever other purpose. Only a few of us will go the distance (me among them - as it's the cheapest financing I will see in my lifetime at ecb+0.5%).....but that has been factored in. So be it...


    Lastly, some of the calcs on here are widely exaggerated in terms of what a tracker may be worth. Please check some key threads over on the AAM forum - where more exact cals have been carried out.

    All I can say to anyone on one - is mind it. If you feel that you need to move, consider your options. In my case, I will be buying again - but I have no intention of giving up the initial tracker (nor is it selling time...nor will it be for another 10 years!).


  • Registered Users Posts: 3 adpk


    Yes, the PTSB....not so much " off a tracker " ...they gave (and I'm open to correction here) 10% extra for any capital payment that was made against one of their tracker mortgages.

    Notwithstanding that, I dont expect the banks to make deals with the ordinary joe. They can sell loan books at institutional level for a few cents in the euro - but giving the ordinary joe a break is not how the game is played apparently.


    I'd imagine that they have also ran the numbers and know what % will abandon their tracker to trade up OR for whatever other purpose. Only a few of us will go the distance (me among them - as it's the cheapest financing I will see in my lifetime at ecb+0.5%).....but that has been factored in. So be it...


    Lastly, some of the calcs on here are widely exaggerated in terms of what a tracker may be worth. Please check some key threads over on the AAM forum - where more exact cals have been carried out.

    All I can say to anyone on one - is mind it. If you feel that you need to move, consider your options. In my case, I will be buying again - but I have no intention of giving up the initial tracker (nor is it selling time...nor will it be for another 10 years!).

    The whole system does not make sense.

    Why has there been so little foreclosures in Ireland as compared to the parts of the USA that saw similar reckless lending practices combined with a massive property bubble e.g Florida, Nevada.

    Why have the banks not offered "outs" like short sales here?

    My guess is that the banking sector is operating as if there were a government entity and not a private sector. Probably feel they can go back to the public trough at any time...so why act in a commercial fashion and give anyone a break. Also probably significant government influence on the banks to keep this house of cards still sorta standing.

    What/where is the AAM thread?
    I may as well humor myself by seeing what I could get as a write-down, although I cannot see it happening to any level that would make me give up my tracker.


  • Registered Users, Registered Users 2 Posts: 8,460 ✭✭✭Ray Palmer


    adpk wrote: »

    Why have the banks not offered "outs" like short sales here?
    .

    Get this, different country different laws.


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  • Registered Users, Registered Users 2 Posts: 4,666 ✭✭✭makeorbrake


    adpk wrote:

    Why has there been so little foreclosures in Ireland as compared to the parts of the USA that saw similar reckless lending practices combined with a massive property bubble e.g Florida, Nevada.

    Why have the banks not offered "outs" like short sales here?

    My guess

    What/where is the AAM thread?
    I may as well humor myself by seeing what I could get as a write-down, although I cannot see it happening to any level that would make me give up my tracker.

    You will find the info you are looking for - on the aam forum (askaboutmoney.com) - type "tracker into the search and you will find all the info you could possibly need on the subject.

    Furthermore, you ask the question (rightly!) as to why this market is not functioning like others i.e. They simply repossess and dump onto the market those properties and get all that unpleasantness off their balance sheets.
    Again, you will find plenty of discourse on this on aam. By all accounts there are a couple of factors....
    - Maybe the banks don't want to realise where exactly their balance sheets stand at exactly - it could suit them (or their current senior management) to draw things out.
    - The other thing you touched on - politically, there seems to be some belief that people cant be turfed out of " their homes ".
    - Legally - they simply cant repossess right now (until there is a change in the law).


    On the political point, is there an effort to try and protect a certain class of people here? I.e. The people who seemed to have got their fingers burnt the most are middle to upper /prefessional classes who couldn't pass up the " opportunity " of multiple property purchases.

    It's taken the IMF to demand that they law be changed to facilitate repossessions. WHY has it taken an external entity to try and bring this about? You would have to ask WHY our own "'powers that be " could not do that off their own bat?


    Getting back to your tracker - as someone else on here has indicated, it's probably unlikely that any deals will be offered. However, if they are, the expectation has to be reasonable - adn one of the key threads on AAM has outlined how a reasonable figure can be arrived at.

    Personally, I'll be keeping mine - and financing it monthly payment by monthly payment. ;-)


  • Registered Users Posts: 1,584 ✭✭✭ronan45


    Zaph wrote: »
    My tracker is at ECB +0.5%, so they'd need to write off a minimum of 75% of what's outstanding before I'd even have the discussion with them.

    Ok So the tracker is AMAZING value at present....
    But when the interest starts to rise as we all know it will, for instance.
    Lets say the ECB rate over the next 10 years creeps up to say 7% Will the tracker be still be seen as great value then? Is the tracker mortgage GUARUNETEED to be value for its entire duration (30 years or so) or is the Crazy low ECB rate just a temporary bonanza that will fizzle out once the ECB starts pumping the rate back up?


  • Registered Users, Registered Users 2 Posts: 4,722 ✭✭✭Balmed Out


    ronan45 wrote: »
    Ok So the tracker is AMAZING value at present....
    But when the interest starts to rise as we all know it will, for instance.
    Lets say the ECB rate over the next 10 years creeps up to say 7% Will the tracker be still be seen as great value then? Is the tracker mortgage GUARUNETEED to be value for its entire duration (30 years or so) or is the Crazy low ECB rate just a temporary bonanza that will fizzle out once the ECB starts pumping the rate back up?

    Will it not just be an expensive mortgage which is still cheaper then the equivalent variable?


  • Registered Users, Registered Users 2 Posts: 8,460 ✭✭✭Ray Palmer


    Balmed Out wrote: »
    Will it not just be an expensive mortgage which is still cheaper then the equivalent variable?

    Yes. If the rate goes up the fixed rates will go up. You can only fix for a relatively short time here and it is pricy to do so.

    If the ECB rate goes to 9% expect fixed rates at about 11-14%. It is all a relative gamble but a tracker is and has been worth a lot for about 10 years at present and probably worth a lot for the next 5 years without a big deal. That could easily be more than half the life of a mortgage.


  • Registered Users Posts: 1,584 ✭✭✭ronan45


    Zaph wrote: »
    My tracker is at ECB +0.5%, so they'd need to write off a minimum of 75% of what's outstanding before I'd even have the discussion with them.

    But When the ECB rates gradually start to go up over the next 10 years then why would the bank offer to write off 75% of the mortgage? I would have thought the bonanza Low ECB rates will be over in less then 10 years? I would assume you have probably only a few years left on yours


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  • Registered Users, Registered Users 2 Posts: 7,879 ✭✭✭D3PO


    ronan45 wrote: »
    But When the ECB rates gradually start to go up over the next 10 years then why would the bank offer to write off 75% of the mortgage? I would have thought the bonanza Low ECB rates will be over in less then 10 years? I would assume you have probably only a few years left on yours

    I think you misunderstand the value of a tracker Ronan. The trackers value to the holder is based on the fact the rate will always be better than the equivalent variable and or fixed rate.

    It is currently loss making to the banks due to the low rates because they cant borrow on the Euribor or anywhere else for that matter at lower rates meaning they lose out.

    Now if the ECB rate moved to 6 - 7 % the tracker owner would still have value over an equivalent variable or fixed rate customer, however given the rate would now supersede what a bank could likely borrow on it would no longer be loss making for the bank and yes you are correct they would not want to write anything off in this scenario.

    Given there is no prospect of a rise anytime soon (and in fact most analysts expect the ECB to cut a quarter point off the base rate at their next meeting) the prospect of 6-7% rates anytime in the short to medium term look remote.


  • Registered Users Posts: 1,584 ✭✭✭ronan45


    D3PO wrote: »
    I think you misunderstand the value of a tracker Ronan. The trackers value to the holder is based on the fact the rate will always be better than the equivalent variable and or fixed rate.

    It is currently loss making to the banks due to the low rates because they cant borrow on the Euribor or anywhere else for that matter at lower rates meaning they lose out.

    Now if the ECB rate moved to 6 - 7 % the tracker owner would still have value over an equivalent variable or fixed rate customer, however given the rate would now supersede what a bank could likely borrow on it would no longer be loss making for the bank and yes you are correct they would not want to write anything off in this scenario.

    Given there is no prospect of a rise anytime soon (and in fact most analysts expect the ECB to cut a quarter point off the base rate at their next meeting) the prospect of 6-7% rates anytime in the short to medium term look remote.

    Thank you D3PO nicely worded now I get you, So for instance if the ECB did go up to say 7%. In that scenario your Banks Standard Variable would maybe be 8.5% and a 5 year fixed be possibly 9%. So really in all circumstances the tracker does win out over even the long term. Cheers Buddy


  • Registered Users, Registered Users 2 Posts: 7,879 ✭✭✭D3PO


    ronan45 wrote: »
    Thank you D3PO nicely worded now I get you, So for instance if the ECB did go up to say 7%. In that scenario your Banks Standard Variable would maybe be 8.5% and a 5 year fixed be possibly 9%. So really in all circumstances the tracker does win out over even the long term. Cheers Buddy

    Pretty much yes.


  • Registered Users, Registered Users 2 Posts: 11,264 ✭✭✭✭jester77


    ronan45 wrote: »
    Thank you D3PO nicely worded now I get you, So for instance if the ECB did go up to say 7%. In that scenario your Banks Standard Variable would maybe be 8.5% and a 5 year fixed be possibly 9%. So really in all circumstances the tracker does win out over even the long term. Cheers Buddy

    If you fixed now for long term, you could win out. I am after fixing with my bank here for 20 years at 3.1%. ECB rates could stay below that over the 20 years and I might be losing out, but I have at least the peace of mind knowing that my mortgage repayments are not going to change for 20 years.


  • Registered Users Posts: 1,584 ✭✭✭ronan45


    jester77 wrote: »
    If you fixed now for long term, you could win out. I am after fixing with my bank here for 20 years at 3.1%. ECB rates could stay below that over the 20 years and I might be losing out, but I have at least the peace of mind knowing that my mortgage repayments are not going to change for 20 years.

    Never heard of a 20 year fixed, which bank is that? Also are you currently on a tracker and cancelling it?


  • Registered Users, Registered Users 2 Posts: 11,264 ✭✭✭✭jester77


    ronan45 wrote: »
    Never heard of a 20 year fixed, which bank is that? Also are you currently on a tracker and cancelling it?

    It's with Deutsche Bank. I'm in Germany, only bought a house recently but I went with the fixed option. It will cost me more now but over the 20 years it might even out, but I don't have to worry about rates for the next 20 years. Trackers are good value now, but I think a long term fixed rate makes some sense.


  • Registered Users, Registered Users 2 Posts: 4,666 ✭✭✭makeorbrake


    jester77 wrote: »
    It's with Deutsche Bank. I'm in Germany....Trackers are good value now, but I think a long term fixed rate makes some sense.
    Sure - they have these (long term fixed rate) products on the continent. However, they are not available on the irish market.


    I've always thought that this is where fixed rates make sense. However, the implementation in Ireland is nonsensical. Fixed rate deals over just a few years really don't help anyone. Some people say that they choose this option as they like to know where they stand - but over such a short term, they really don't know where they stand! It's relatively easy for the banks to price such products in a way that they are not going to lose and at the end of this short period, the customer is left with exactly what they wanted to avoid i.e. uncertainty and possibly a financial shock as they then have to adjust to whatever the prevailing rates are at that time (regardless of whether they enter into another fixed rate or go with variable rate).


  • Registered Users, Registered Users 2 Posts: 484 ✭✭MMAGirl


    jester77 wrote: »
    If you fixed now for long term, you could win out. I am after fixing with my bank here for 20 years at 3.1%. ECB rates could stay below that over the 20 years and I might be losing out, but I have at least the peace of mind knowing that my mortgage repayments are not going to change for 20 years.

    What if you wanted to pay down your mortgage early to save on interest


  • Registered Users, Registered Users 2 Posts: 11,264 ✭✭✭✭jester77


    MMAGirl wrote: »
    What if you wanted to pay down your mortgage early to save on interest

    Would depend on the deal you sign. I can only pay down 10% of the mortgage per year (sondertilgung) on top of what I pay which would mean I wouldn't be able to pay it off for at least 9 or 10 years (if I was able to), but that suits me. If you want something more flexible then you would have a higher interest rate.


  • Registered Users, Registered Users 2 Posts: 7,879 ✭✭✭D3PO


    jester77 wrote: »
    If you fixed now for long term, you could win out. .

    Theoretically yes you could but

    A) Long term fixed rates don't exist in Ireland

    B) Banks setting a 20 year rate are doing so with a certain level of statistical trending and analysis on where rates are likely to go. Clearly over the longer the term the harder it is for them to do, but they certainly add a buffer in to try and mitigate that. So whilst possible to come out on top low of averages says you wouldn't.


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  • Registered Users Posts: 226 ✭✭Sand Wedge


    D3PO wrote: »
    Theoretically yes you could but

    A) Long term fixed rates don't exist in Ireland

    B) Banks setting a 20 year rate are doing so with a certain level of statistical trending and analysis on where rates are likely to go. Clearly over the longer the term the harder it is for them to do, but they certainly add a buffer in to try and mitigate that. So whilst possible to come out on top low of averages says you wouldn't.


    Would it not be that the banks are simply borrowing the money over 20 years themselves at a cheaper fixed rate than the 3.1% that they have offered. Rather than what happened here where the banks borrowed short term and lent it long term. If the bank can borrow over 20 years at a fixed rate of less than 3.1% and lend it over the same term at 3.1% the bank makes money and the cutomer gets a good fixed interest rate.

    The banks here really need to start funding mortgages from long term borrowings matching the term that they are lending mortgages for.


  • Registered Users, Registered Users 2 Posts: 412 ✭✭roro2


    Sand Wedge wrote: »
    Would it not be that the banks are simply borrowing the money over 20 years themselves at a cheaper fixed rate than the 3.1% that they have offered.

    That's the key point, they match their funding so it's not really about predicting where rates will go. Banks here have trouble funding at anything longer than a few years, and certainly not at such affordable rates. Banks' access to funding has improved in the last year or two and may continue to improve, but its just not feasible for them to offer such competitive long-term fixed rates at the moment.


  • Registered Users, Registered Users 2 Posts: 7,879 ✭✭✭D3PO


    roro2 wrote: »
    That's the key point, they match their funding so it's not really about predicting where rates will go. Banks here have trouble funding at anything longer than a few years, and certainly not at such affordable rates. Banks' access to funding has improved in the last year or two and may continue to improve, but its just not feasible for them to offer such competitive long-term fixed rates at the moment.

    Who's funding banks with 20 year bonds at less than 3.1% (for them to offer a 20 year fixed at that rate they really need a bond at a max of 2.5%)

    More likely they are using a strong deposit base with little interest being offered on such accounts to offer such a good fixed rate.


  • Registered Users, Registered Users 2 Posts: 412 ✭✭roro2


    D3PO wrote: »
    Who's funding banks with 20 year bonds at less than 3.1% (for them to offer a 20 year fixed at that rate they really need a bond at a max of 2.5%)

    More likely they are using a strong deposit base with little interest being offered on such accounts to offer such a good fixed rate.

    Strong banks in the core can issue long-term bonds at 2-3% but, as you say, stable deposits play an important role too as they can often be assumed to be long-term in nature even if they are contracted over much shorter terms, or are even demand deposits. The point being that banks that can offer long-term fixed rates don't carry the full interest rate risks from these mortgages - they match their funding through long-term liabilities (bonds and deposits) where possible and also use hedging to reduce the risks. These options are much more expensive for Irish banks.


  • Registered Users, Registered Users 2 Posts: 16,741 ✭✭✭✭Galwayguy35


    BOI sent me a letter and rang as well asking would I change from the tracker but offered very little as an incentive to do so.

    Maybe some people might take them up on the offer but I doubt it.


  • Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,421 CMod ✭✭✭✭Pawwed Rig


    Haha you can't blame them for chancing their arm.

    Dear galwayguy35

    Would you mind paying us more with no benefit to you?

    Thanks in advance

    Your friends at BOI

    I suppose if they get 1 biter it justifies the cost of thousands of letters.


  • Registered Users Posts: 226 ✭✭Sand Wedge


    Pawwed Rig wrote: »
    Haha you can't blame them for chancing their arm.

    Dear galwayguy35

    Would you mind paying us more with no benefit to you?

    Thanks in advance

    Your friends at BOI

    I suppose if they get 1 biter it justifies the cost of thousands of letters.

    I'd say they would get more than one. If you where looking to sell your house in the very near future, would you not take the write down in capital they where offering? You would make more of a profit or have less negative equity when you sell?

    Example scenario:
    Mortgage currently at 300k on tracker. I am looking to sell my house and move. The bank offers me 5% reduction in mortgage for changing to variable. i.e. 15k off my mortgage. My mortgage now down to 285k. When I sell house for 310k then I make 25k instead of 10k.


  • Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,421 CMod ✭✭✭✭Pawwed Rig


    Sand Wedge wrote: »
    I'd say they would get more than one. If you where looking to sell your house in the very near future, would you not take the write down in capital they where offering?

    That is a fair point but by the post I assumed they were not writing down any of the capital. I may have misinterpreted.


  • Registered Users Posts: 3 fleetfoot


    Changing from a tracker mortgage i think depends on your age !
    If say you are 60 years old and they offer 10k to change snatch there hand off,
    (depending on mortgage of course )
    Say you loan is down to 100k by this age must be close (sometimes )
    Take the 10k and bugger off to greece for 6 months!
    Only live once
    Younger folk stick with the tracker at all costs nd dont give em an excuse (non payment ect )to take it off you !


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  • Registered Users, Registered Users 2 Posts: 106 ✭✭charlesh


    BOI sent me a letter and rang as well asking would I change from the tracker but offered very little as an incentive to do so.

    Maybe some people might take them up on the offer but I doubt it.

    come on GG35 - we ALL want to know .... what was the offer :D

    if possible can you state your tracker , outstanding mortgage - and what the offer was.

    not asking much am i?

    there was an article in the SBP a couple of weeks ago - stating most trackers are worth between 20 and 30% of the mortgage.
    IMO thats about fair.


  • Registered Users Posts: 1,584 ✭✭✭ronan45


    Removing a tracker mortgage from homeowners in arrears

    I read with Interest it is planned to CUT anyone in arrears loose from their tracker mortgage! Is that LEGAL??? Surely not. I know you are effectively breaking the contract if you go into arrears but afaik there is nothing in the paperwork to say they have the power toi remove you from the tracker

    The Central Bank has said proposals to allow banks to remove tracker mortgages from borrowers in serious arrears are designed to help people stay in their homes and avoid repossession.


    http://www.rte.ie/news/business/2013/0412/381001-70-of-mabs-clients-are-between-41-and-65/

    http://www.magicmum.com/phpBB/viewtopic.php?f=64&t=497192&sid=ea4c69aad7682613d9852964bc6e8dad&view=print


  • Registered Users, Registered Users 2 Posts: 412 ✭✭roro2


    ronan45 wrote: »
    Removing a tracker mortgage from homeowners in arrears

    I read with Interest it is planned to CUT anyone in arrears loose from their tracker mortgage! Is that LEGAL??? Surely not. I know you are effectively breaking the contract if you go into arrears but afaik there is nothing in the paperwork to say they have the power toi remove you from the tracker

    The Central Bank has said proposals to allow banks to remove tracker mortgages from borrowers in serious arrears are designed to help people stay in their homes and avoid repossession.


    http://www.rte.ie/news/business/2013/0412/381001-70-of-mabs-clients-are-between-41-and-65/

    http://www.magicmum.com/phpBB/viewtopic.php?f=64&t=497192&sid=ea4c69aad7682613d9852964bc6e8dad&view=print

    It is not planned to cut anyone in arrears from their Tracker. For clarity, this is what the Central Bank has said:


    The Central Bank is considering
    whether there is merit in allowing a lender to move a borrower in arrears off a
    tracker rate, where the lender has offered an alternative arrangement which is
    advantageous to the borrower in the long term, e.g., a debt write off.



  • Registered Users, Registered Users 2 Posts: 1,853 ✭✭✭Glenbhoy


    ronan45 wrote: »
    Removing a tracker mortgage from homeowners in arrears

    I read with Interest it is planned to CUT anyone in arrears loose from their tracker mortgage! Is that LEGAL??? Surely not. I know you are effectively breaking the contract if you go into arrears but afaik there is nothing in the paperwork to say they have the power toi remove you from the tracker

    I'd be shocked if it wasn't legal. A contract is an agreement between two parties, if one party fails to fulfil their side of the agreement then the legal right to enforce the original agreement exists. In other words, the bank can take possession of the property if the mortgage holder isn't make the payments stipulated.
    The bank may however renegotiate the original contract at that point and as they have a fairly hefty bargaining position they will most likely demand a change in the terms of your mortgage, which would mean, bye bye tracker!! Of course, the mortgage holder may also get some of the outstanding debt written off too, but that could mean entering a PIP or some similar scheme.


  • Registered Users Posts: 217 ✭✭Buzz84


    Just wondering we are thinking of selling our house.

    We have it rented out at the moment. The rent just about covers the mortgage but by the time we pay household tax, NPPR and maintenance ,we are loosing about 2-3k a year on it.

    I could sell it for 160k but we still owe 179k but it is a tracker mortgage. Would a bank accept a deal?


  • Registered Users Posts: 379 ✭✭Someday


    Buzz84 wrote: »
    Just wondering we are thinking of selling our house.

    We have it rented out at the moment. The rent just about covers the mortgage but by the time we pay household tax, NPPR and maintenance ,we are loosing about 2-3k a year on it.

    I could sell it for 160k but we still owe 179k but it is a tracker mortgage. Would a bank accept a deal?

    How much a year is your Mortgage decreasing each year by? Look at that, could be 10K+ and with property on the rise, you should ride it out for 5 years IMO, you will then take less of a hit an maybe even make a few quid or ride it out for longer and it could be a good investment for 2-3K a year!


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  • Registered Users, Registered Users 2 Posts: 8,460 ✭✭✭Ray Palmer


    Buzz84 wrote: »
    Just wondering we are thinking of selling our house.

    We have it rented out at the moment. The rent just about covers the mortgage but by the time we pay household tax, NPPR and maintenance ,we are loosing about 2-3k a year on it.

    I could sell it for 160k but we still owe 179k but it is a tracker mortgage. Would a bank accept a deal?


    I hope you are paying tax on that income.


  • Registered Users, Registered Users 2 Posts: 6,003 ✭✭✭handlemaster


    Buzz84 wrote: »
    Just wondering we are thinking of selling our house.

    We have it rented out at the moment. The rent just about covers the mortgage but by the time we pay household tax, NPPR and maintenance ,we are loosing about 2-3k a year on it.

    I could sell it for 160k but we still owe 179k but it is a tracker mortgage. Would a bank accept a deal?

    If its danske bank is hold off see what's coming. Any other bank call them


  • Registered Users Posts: 217 ✭✭Buzz84


    If its danske bank is hold off see what's coming. Any other bank call them

    How come?

    We are Permanent TSB.


  • Registered Users, Registered Users 2 Posts: 6,003 ✭✭✭handlemaster


    Buzz84 wrote: »
    How come?

    We are Permanent TSB.


    Danske closing retail


  • Registered Users, Registered Users 2 Posts: 4,666 ✭✭✭makeorbrake


    Buzz84 wrote: »
    How come?

    We are Permanent TSB.
    See another boards thread with recent info re Danske/NIB. Looks like they will be selling off their loan book to a third party - so potential for deals.


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