# Writedown of PTSB Tracker Rate Mortgage??????



## CnocAmhran (30 Aug 2015)

Recently I wrote to PTSB offering, in return for a writedown to lodge 150k against the outstanding amount of €210k on my Tracker Mortgage which has 15 years left to run with PTSB.

The reply I received from PTSB was,

"I wish to advise that there are currently no plans to reintroduce the 10% Tracker Mortgage Overpayment Bonus, however Permanent TSB is considering various deleveraging opportunities and if an offer were to be made available we would notify all eligible customers accordingly."

I also submitted a similar request 2 years ago which generated a similar reply from the PTSB bank with the exception of not mentioning the possible deleveraging opportunities in their reply 2 years ago.


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## Brendan Burgess (30 Aug 2015)

The cost of funds for all the banks has reduced dramatically. For ptsb,  it  is around 1%, so they are not losing much if anything on tracker mortgages.  There is no incentive for them to offer an incentive to get rid of these trackers. 

Brendan


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## CnocAmhran (31 Aug 2015)

What does the PTSB bank mean ragarding deleveraging opportunities?, is there a possibility PTSB may sell off some of their Tracker loan book at a discount in the future and in that way one may benefit from a discount?


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## Brendan Burgess (31 Aug 2015)

Very unlikely, but I suppose it's possible.  I think that they might like to sell it to the ECB at par value, as has been suggested by Brian Hayes M.E.P.  but they don't need to deleverage any further.


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## Ballycumber (4 Nov 2015)

Hi

Just saw this thread now. I am in a similar situation to  CnocAmhran and am keeping a watching eye on PTSB.  

The interest rate I pay to PTSB is 1.1% (I know that others pay less) and I was interested in Brendan's comment that PTSB can access funds for around 1%.   I am no expert in the area, but this seems cheap to me.   The NTMA recently bought 15 year bonds at 2.2% and I would have thought that Ireland inc might be able to borrow cheaper than PTSB? I know that PTSB will have various sources of funding, including very low rate deposit and current accounts,  but I would have thought that they must borrow siognificant amounts in the markets / through inter bank loans?  

Assuming Brendan's 1% estimate is correct, in my case where I borrow from them at 1.1%, would PTSB's margin of 0.1% even covers their costs? 

Any views?


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## Sarenco (4 Nov 2015)

Customer deposits, including current accounts, represent the primary source of funding for PTSB and (ultra-cheap) ECB funding remains material.  Given the very significant cuts to PTSB's deposit rates in recent months, I would suspect that their current cost of funds is less than 1% and I don't think there is any realistic chance that PTSB would offer a discount for an early redemption.

Incidentally, we had a lengthy discussion on this topic here:

http://www.askaboutmoney.com/threads/are-the-lenders-losing-money-on-tracker-mortgages.193149/


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## Gerry Canning (4 Nov 2015)

Cnoc &Ballycumber.

Banks are no longer (losing) on funding trackers ,as the thread shows.
They ain,t making money either but
I assume people like yourselves are not in negative  equity so by keeping your loans on banks books , can a Bank not say their overall loan book is in a better shape, whereas if they let good customers like yourselves escape their book of loans diss-improves which then impacts on their future funding costs?


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