# Selling house - on tracker mortgage - would bank settle for less?



## Curiousty (10 May 2010)

Just a thought I had today and was wondering has anyone come across it. We have a tracker mortgage ECB + 0.9%. We bought our house in 2004 for €228K but are realistically looking at offers now of around €175K.  (We have about 13 years remaining on mortgage). Redemption value of mortgage is about €180k.  Would the bank do a deal and settle mortgage for less? Has this been done?  We really want to sell and this would seriously help finances. Thanks


----------



## rosemartin (10 May 2010)

just cant see that happening unless you stop paying the mortgage saying you cant afford it,  but that will have consequences if you are looking for loans in future


----------



## saintstephen (10 May 2010)

A friend is on a tracker, his mortgage is now 180k he had a visit from the advisor trying to get him to switch, when the advisor realised it was no hope he admitted the bank was looking at a +20k loss on the mortgage.

I would say there might be a chance, no harm in asking.


----------



## jack2009 (10 May 2010)

no they won't agree they have lost enough money by giving the tracker in the first place and won't be looking to increase their losses.  They have nothing to gain by giving you a discount unless you use the mortgage that you plan to take out as bait.


----------



## csirl (11 May 2010)

In this case there is only a 5k gap between the sale price and the outstanding mortgage. I would guess that the bank would probably be open to giving you a 5k personal loan to bridge the gap.


----------



## Curiousty (11 May 2010)

*Tracker mortgage redemption*

thanks for all the comments. The thing is we can accept this lower offer and clear the loan. Or not and stay in the house. So I suppose its up to the bank which is the biggest loser (the tracker over next 12 years or let us out now). Think I will chance asking anyhow. Do you reckon they more up for it if we were borrowing with them for next house?


----------



## fizzelina (11 May 2010)

Curiousty said:


> Do you reckon they more up for it if we were borrowing with them for next house?


 
They might not even give you a mortgage for the next house. If this sale doesn't cover the existing mortgage and there is nothing left over then will you have a deposit for the next house? There has been threads recently about people offered money to break out of tracker rates, could you try to negotiate an amount with them to switch to a variable rate since you plan to sell anyway and lose the tracker. You could then use any amount they give you to put off the mortgage so that any house sale would then cover the remaining mortgage.


----------



## fme (12 May 2010)

In terms of negotiating a payoff in order to switch to a regular variable from a tracker, I would imagine the bank would have a clawback clause in the event of you selling up surely?
If not, do let me know as we are in a similar position in that we intend moving house soon and will lose the good tracker we have with ptsb.


----------



## fizzelina (12 May 2010)

fme said:


> In terms of negotiating a payoff in order to switch to a regular variable from a tracker, I would imagine the bank would have a clawback clause in the event of you selling up surely?
> UOTE]
> 
> This makes very good sense and not something that occured to me or some others before I think. Has anyone actually been given a payoff from a bank or is it all still speculation?


----------



## NorfBank (12 May 2010)

It all discussed in great detail here

http://www.askaboutmoney.com/showthread.php?t=135875


----------

