# Tracker Mortgage-Pay off some of the balance



## helentry (15 Jan 2011)

Hello all,
I have read reports last year where banks were eager to get tracker mortgages off their books,and were willing to pay mortgage holders a sum if they changed to a variable rate. Is this still true?
I also have seen reports in papers where banks would bundle their tracker mortgages and sell them on as bonds at a deep discount.
I have a tracker mortgage with 150k outstanding. In light of the 2 reports I mention above do you think the following is feasible?
I have 30k saved and might be coming into another 50k shortly. If I offer to go to my bank manager and put this 80k against my mortgage, would he give me a discount on the rest of my mortgage outstanding capital balance if I agreed to put the remainder on variable rate instead of tracker rate? e.g 150k balance less 80k paid = 70k remaining . Bank might now say your balance will be 50k for changing to variable rate.
The way I see it, both the bank and I would be in a win win situation. The bank would have a smaller loan on its books but be getting a better rate from me. Also it would not to sell it on to the bond market at a deep discount.And I would have a smaller mortgage.
If the above is feasible ,would there be any tax consequences?
Thanks


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