# Why do people expect deals when they are just in negative equity?



## TommyB (18 Jul 2013)

(_Folks I have moved this letting off steam from the Original post - please try to avoid taking threads off topic Brendan 

. http://www.askaboutmoney.com/showthread.php?t=180620)_
This is an outrageous post. The PTSB is losing a packet on your interest only tracker and that is being funded by the rest of us yet you are still pocketing hundreds a month. They should really insist on you paying the full amount if you are getting that much rent.


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## Luternau (18 Jul 2013)

But Tommy, it was PTSB that made the offer of the loan on the ECB plus x margin. That ECB rates are so low is making this a good investment-if they were higher, then it would not be.  One must not forget, that as late as Jul 2008, ECB rates were 4.25% and the banks were taking the same margin on top.
The OP or anyone else should not have to forfeit the benefit of low interest rates because the banks made a bad call when deciding to offer these loans. Remember also, that only 75% of interest is deductable and that tax is paid on the profit. So its not all down side for the Exchequer.


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## TommyB (18 Jul 2013)

Luternau said:


> But Tommy, it was PTSB that made the offer of the loan on the ECB plus x margin. That ECB rates are so low is making this a good investment-if they were higher, then it would not be.  One must not forget, that as late as Jul 2008, ECB rates were 4.25% and the banks were taking the same margin on top.
> The OP or anyone else should not have to forfeit the benefit of low interest rates because the banks made a bad call when deciding to offer these loans. Remember also, that only 75% of interest is deductable and that tax is paid on the profit. So its not all down side for the Exchequer.



State owned PTSB are allowing them remain on a tracker despite not fulfilling the terms and seeking interest only payments.


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## Luternau (18 Jul 2013)

Not so. Please read what I posted at no.5 again.
There is no evidence the OP is not fulfilling terms of the loan.


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## TommyB (18 Jul 2013)

They are within their legal rights to remove the tracker rate. They are not doing this and in doing so are not acting in the best interest of their shareholders. Except in this messed up world they are doing exactly what their shareholders, ie the state, want.


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## Luternau (18 Jul 2013)

Fine-thats your view and you are entitled to it.


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