# PTSB Mortgage Bal €115k, Tracker ECB +1.25, 9y left, clear mrtg with redundancy €70k?



## Ninetysix (23 May 2011)

Hi,
Looking for some advice for my mother, any help appreciated.

Some info first of all;

 - Mortgage has a remaining balance of approx €115k 
 - On a tracker (+1.25)
 - 9 years remain on the mortgage
 - Monthly payments are €1k
 - Mortgage is with PTSB

She will receive a net redundancy of approx €70-80k in the next few months and the likelyhood of her finding work again are very slim.

What advice would you give her regarding the mortgage?
Given it's a tracker, would the bank consider a deal? If yes, what would the best approach?

Thanks in advance


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## corkmike (23 May 2011)

You might get a deal of maybe 10k but no way will they do a deal of 45k, given the current off that they have made. You are looking for nearly a 40% write off i.e. 45k off of 115k. Also the money 70-80k will pay the mortgage for a long time and would give someone alot of time to repay. Look at all the options - working for less in another industry and also look at it as a 45k mortgage over 9 years if you did pay off about 450 euros per month. You can always try and see what they say.
Regards
Mike


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## Ninetysix (23 May 2011)

corkmike said:


> You might get a deal of maybe 10k but no way will they do a deal of 45k, given the current off that they have made. You are looking for nearly a 40% write off i.e. 45k off of 115k. Also the money 70-80k will pay the mortgage for a long time and would give someone alot of time to repay. Look at all the options - working for less in another industry and also look at it as a 45k mortgage over 9 years if you did pay off about 450 euros per month. You can always try and see what they say.
> Regards
> Mike


 
Thanks for the reply Mike. 

Considering if she paid in full today, she would receive a 'bonus' from the new PTSB €500 scheme of €11,500. This equates to €8k if she paid 80k leaving €27k.

Would it be possible they might consider a further knockdown to get rid of the tracker? 

I'm not sure what a tracker would be costing the bank over the remaining life......anyone?


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## corkmike (23 May 2011)

Its always worth trying but remember rates are predicted to rise over the coming years. Therefore make sure that you have a deal that she can afford i.e. something fixed over the next 5 years if she is uncertain if she will be able to work again.
Look at all your options and see what they offer and work out the figures.
Don't show your hand i.e. that she will not be able to work.
Let us know how you get on.
All the best
Mike


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## f9710145 (29 May 2011)

ninetysix - if she repaid the full amount today she wouldn't be able to avail of the current PTSB deal as the small print gets them the money back if you repay in full within 6mths.  Also you can only get the deal for up to 50% of the balance so in her case she could only get the discount on €57,500 and only for full €5000 multiples so repaying €55,000 would knock €60,500 off.  So she could only get a max discount of €5,500, and only if she doesn't repay the rest for another 6mths.


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## Sunny (30 May 2011)

f9710145 said:


> ninetysix - if she repaid the full amount today she wouldn't be able to avail of the current PTSB deal as the small print gets them the money back if you repay in full within 6mths. Also you can only get the deal for up to 50% of the balance so in her case she could only get the discount on €57,500 and only for full €5000 multiples so repaying €55,000 would knock €60,500 off. So she could only get a max discount of €5,500, and only if she doesn't repay the rest for another 6mths.


 
No, they changed it. You can pay off the whole mortgage now. 

OP, would she not be better off keeping some money if she doesn't look like being able to get a job anytime soon. You will probably find a deposit account that pays more than ECB + 1.25%. Just worried that she would pay off the mortgage but then find she has nothing to live on (I am assuming she doesn't have another income).


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## f9710145 (30 May 2011)

sunny - where did you hear that?  I received the original offer with all the terms and conditions about max 50% and no full repayment within 6 months.  They still have these terms on their website.  It would be great if they've changed it as we're about to put our house on the market and would love a 10% discount.  
Did you get a letter about it, or where can I get that in writing?


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## Sunny (30 May 2011)

f9710145 said:


> sunny - where did you hear that? I received the original offer with all the terms and conditions about max 50% and no full repayment within 6 months. They still have these terms on their website. It would be great if they've changed it as we're about to put our house on the market and would love a 10% discount.
> Did you get a letter about it, or where can I get that in writing?


 
It was in the paper yesterday (Sunday Times I think). I will try and find a link. It was mentioned on another thread as well. I would give them a ring if I was you.


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## f9710145 (30 May 2011)

great - thanks


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## Brendan Burgess (30 May 2011)

OP

This is the perfect case where you should take advantage of the PTSB offer. 

It meets most of the criteria for making it good value.

There is only 9 years left on the mortgage. 
The rate is not particularly cheap. 

Go for it. I very much doubt that they will offer a better deal, but you can ask. 

After paying 80k+ 8k credit off a €115k mortgage, sh e will be left owing only €27k, her monthly repayments will be only €300 per month. There will be a very low loan to value ratio, so the bank's security is huge. 

Brendan


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## Ninetysix (31 May 2011)

brendan burgess said:


> OP
> 
> This is the perfect case where you should take advantage of the PTSB offer.
> 
> ...


 
Thanks for the comments Brendan - can I ask you what you mean by the line in bold? What is the benefit here? 

I think even at 300p/m, based on her pension she will struggle with that payment



f9710145 said:


> sunny - where did you hear that? I received the original offer with all the terms and conditions about max 50% and no full repayment within 6 months. They still have these terms on their website. It would be great if they've changed it as we're about to put our house on the market and would love a 10% discount.
> Did you get a letter about it, or where can I get that in writing?


 
The article is on the independant website, can't post a link as I don't have enough posts yet. 10% bonus for full clearing.


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