# IBA recommendation 25% off mortage principal when switching from tracker mortage



## SunnyH (4 Apr 2012)

Has anyone been successful in negotiating a 25% reduction in the principle due on their mortgage, when moving from a tracker mortgage.  My mortage is with EBS, was wondering how to go about negotiating with the bank do you put it in writing or call in to speak to the branch manager.

http://www.irishexaminer.com/business/get-25-off-mortgage-before-giving-up-your-tracker-189255.html


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## Brendan Burgess (4 Apr 2012)

Other than Bank of Scotland, none of the banks is offering this deal at the moment.

Brendan


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## DerKaiser (4 Apr 2012)

Is that actually an IBA recommendation or the journalist's lazy interpretation?

All I see is a very specific case where someone is on a tracker of ECB +1% would pay 25% less than someone on the current PTSB standard rate of 5.2% over a 20 year annuity mortgage.

It's quite a generalisation to say a 25% writedown is appropriate for everyone with a tracker.

As an aside, here is the calc:

(1 - (1.02 ^ -20))/0.02 = 16.35
(1 - (1.052 ^ -20))/0.052 = 12.25

12.25 is 25% less than 16.35

I see the IBA have called it a "study", poor fools probably paid an actuary a few grand for that...


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## Frank (6 Apr 2012)

Brendan 

What deal is BOS offering?

Have not heard anything like this.


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## TRS30 (10 Apr 2012)

Frank said:


> Brendan
> 
> What deal is BOS offering?
> 
> Have not heard anything like this.


 
Would be interested in this as well....


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## 44brendan (10 Apr 2012)

There is no general "Offer" from BoS re loan clearance. However, it is clear in the market that Certus/BoS are in an exit strategy from the Irish market. As such they are prepared to do deals on loan clearance, which other banks are not. There is no point in approaching them unless you have alternative finance in place.


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