What would you offer your bank to clear your tracker mortgage

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Flute

Registered User
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Hi Guy’s

Just looking for people’s opinions on this.

Back in 2004 I took out a variable mortgage with AIB for around 130,000 euro, then in 2006 I took a second mortgage from AIB for 110,000 euro first 3 years were interest only.

I took an extra 15,000 on the first mortgage which brought it up to around 145,000 and changed into a tracker mortgage, I think the rate is +.95%

The second mortgage is currently fixed for 5 years at around 6% (can’t remember the exact rate) I think higher than usual because it is an investment mortgage, since last April.

Currently on the tracker mortgage I have 120,000 euro left, and on the investment one about 100,000.

As they are supposedly losing money on these trackers and would like to get people of them. The question I have is if I went to AIB and said I want a deal to pay of my tracker mortgage completely what would be a fair offer.

I was thinking between 80,000 – 90,000, closer to 80,000.
If I paid on average of 600 a month by 96 months (8 years so far) = 57,600 + 80,000 = 137,600.
They would be down about 7,000 from the total of 145,000 I don’t know over the lifetime of the tracker would they lose more than that but if I keep going with the investment mortgage they would more than make up for it.
 
AIB are just not doing deals for early repayment of trackers, so it really doesn't matter what you think is a fair price.
 
I'm glad to learn that AIB are not doing deals - we own AIB - so if they do deals, then we, as taxpayers, have to pay for those deals. I reckon you just need to pay what you're due to pay for the foreseeable.
 
Thanks Brendan.

Eithne fair point but if the banks are also losing money on trackers are we the tax payers not also picking up the tab for that.
 
Yes, you're right of course - I just don't see that it could be fair to allow people who have 'Bertie - ie shoebox - money, to get a big reduction while the rest of us are diligently trying to pay the mortgage - even it it is a tracker!
 
Eithneangela said:
we own AIB - so if they do deals, then we, as taxpayers, have to pay for those deals.
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Well, it's been discussed on aam before with many believing that it would be a win/win for bank and client - and others who say that over the longterm, banks really are not going to be taking such a hit on the cost of money (don't understand this - but then I defer to folks who have more in depth knowledge of such things). However, if they did start to consider doing deals, there is upside for both parties - so no give away here.

Eithneangela said:
I just don't see that it could be fair to allow people who have 'Bertie - ie shoebox - money, to get a big reduction while the rest of us are diligently trying to pay the mortgage - even it it is a tracker!
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A bit of a generalisation (or maybe it's just me that has slogged it out to save some modest 'shoebox money' which I'd like to throw at the mortgage)....?
 
Have to agree with both points serotoninsid.
Win win for bank, customer, and tax payer.
And it ould be nice to get a bit of break in the times that are in it, worked hard for every penny in my shoebox.
 
@ Flute.
I have an idea for you, where you take matters into your own hands.
If say you consider that 90% of your mortgage would be be a fair value to repay , just repay the 90% and continue paying off the remainder over the original lifespan of the mortgage. ie. paying a much reduced sum.
You wouldn't be doing anything contrary to the spirit of the mortgage. In time the company may get fed up of receiving such a small sum of money that they settle with you.
Just a suggestion
 
Why would you want to pay off a tracker earlier in any case, it's very cheap money. It's a way of paying off a loan really easily. Inflation might even be beating it. You'd be better off concentrating on what to do with the 80K you have, how much of a return you are getting on that.
 
Flute said:
Thanks Brendan.

Eithne fair point but if the banks are also losing money on trackers are we the tax payers not also picking up the tab for that.
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I don't believe for one second that the taxpayers are paying for the losing trackers, but I do believe that people like me and others on variable rate mortgages are paying for these trackers
 
Pope John 11 said:
I don't believe for one second that the taxpayers are paying for the losing trackers, but I do believe that people like me and others on variable rate mortgages are paying for these trackers
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I disagree. If there were no tracker mortgages, then we - like you - would all be paying the rates that you currently have the misfortune to be paying.
 
Yorky said:
I can't see how they have "misfortune" unless a tracker mortgage was unavailable at time of application. If they opted for a standard variable rate then that was their choice.
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I was on an AIB variable initially, but while watching the markets discovered trackers were available. I applied and thankfully, was switched to a tracker.
 
Yorky said:
I can't see how they have "misfortune" unless a tracker mortgage was unavailable at time of application. If they opted for a standard variable rate then that was their choice.
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I think it could well be deemed 'misfortune'. I know in my case - if it wasn't for AAM, I may never have been on one! Granted, there was a time when that advertising campaign ran i.e. "I don't know what a tracker mortgage is" ...but for folks that went looking for a mortgage before this, I think there is every reason to believe anyone of us could have ended up on SVR. Thanks to info posted by others here, I was able to get the best deal going - and then switch within the space of 24 months - to a new product that bettered that again. At a later point, trackers were removed from the market - so anyone taking a mortgage more recently has no option but to take SVR (if they can get one at all!).
 
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