# Plan to shift loss-making trackers on talks agenda



## MentalNote (6 Apr 2012)

This would hopefully ease the burden on SVR customers. Could it have any impact on tracker customers?



> The Irish Times - Friday, April 6, 2012
> *SIMON CARSWELL, Finance Correspondent*
> THE  PLAN to move tracker mortgages out of AIB and Irish Life Permanent is  aimed at making the lenders more valuable so the Government can start  selling down its shareholding in the State-controlled banks, Minister  for Finance Michael Noonan has said.
> He confirmed that  negotiations to change the annual payments on the State’s bailout bill  for Anglo Irish Bank and Irish Nationwide also involved moving  loss-making tracker mortgages out of AIB and Permanent TSB, he said.
> ...


[broken link removed]


----------



## potnoodler (6 Apr 2012)

Don't think the bank is going b charging svr customers any less , coz it has nothing to gain by so , of course some negotiation should be done with trackers to clear early, but probably won't


----------



## walshd (7 Apr 2012)

With the loss making trackers off the books, they'd surely lower the svr wouldn't they?


----------



## MentalNote (7 Apr 2012)

walshd said:


> With the loss making trackers off the books, they'd surely lower the svr wouldn't they?



I would have thought so!


----------



## newirishman (7 Apr 2012)

walshd said:


> With the loss making trackers off the books, they'd surely lower the svr wouldn't they?



So at the very moment where you have the chance to finally setup your business more sustainable you then want to lower the SVR to immediately make your business unsustainable again? 
Doesn't make any sense to me.


----------



## walshd (7 Apr 2012)

Why help them so.... They can't just take take take..


----------



## itsallwrong (7 Apr 2012)

They don't have to lower the rates because:

They don't need to be competitive or try to keep customers loyal because nearly all of them are tied to them have no chance of changing that. 
No other banks are offering transfers, the country is in negative equity and a lot of the SVR's are in arrears. 
They have the SVR customer tied over a barrel big time.

*P*ermanently *T*ied *S*truggling *B*orrowers


----------



## itsallwrong (7 Apr 2012)

walshd said:


> Why help them so.... They can't just take take take..


 
If you read your mortgage contract, you will find several clauses that allow them to do what they like, whenever they like for as long as they like.

They may adjust the rate and write to you telling you so.
My favourite one is - Clause 12.4.17 (j) any other matters which PTSB considers appropriate.

Talk about a get out of jail free card or what?


----------



## walshd (8 Apr 2012)

Government should put in a few bailout conditi
ons...


----------



## MentalNote (8 Apr 2012)

newirishman said:
			
		

> So at the very moment where you have the chance to finally setup your business more sustainable you then want to lower the SVR to immediately make your business unsustainable again?
> Doesn't make any sense to me.


Reducing the SVR would reduce the potential profits, but that doesn't mean PTSB would reduce them to a loss making level, obviously. Also, uncompetitive rates are hardly the model of sustainable business in the longer term.


----------



## Roamer808 (9 Apr 2012)

But will the government see sense?  At the rate the banks are being amalgamated, it will be one bank left!  Hardly competition?
Reducing rates might ease the suffering of the SVR customers but will they since Brendan pointed out in a key post somewhere that they are making money on those loan but losing a fortune on the trackers.  Cut the trackers and maybe they have a chance?


----------



## reddanmm (10 Apr 2012)

I caught a quick glimpse of mondays indo and according to them the decision to come at the end of april on what was to happen with the bank will now be extended ( surprise surprise ) 

so any svr customers will be left in limbo . I  only got a glance so i can't speak on the full article but anyone that can enlighten us on this article feel free


----------

