# Two mortgages and tracker



## guerngirl (18 Jan 2012)

Hi

I have a house mortgage of EUR 500,000 (33 year term) due to go to tracker of ECB+1.5%.  And a mortgage of EUR 200,000 (fixed two year rate) on an apartment that I rent out.

My question is, what are the chances of the bank wanting to make a deal to pay down the large majority of the apartment mortgage in exchange for me handing back my tracker.  And would it be worth it it the long run, to lose the tracker?  What lumpsum amount would make it worth it to get rid of the tracker, and are banks entering into deals such as this.  

My husband has a permanent job and I work on contract.
Thx.


----------



## ClubMan (18 Jan 2012)

Very rough calculations:

€500K @ 2.5% over 33 years earns the bank €235K interest in total
€500K @ 4% (indicative conservative _SVR_) earns the bank €400K interest in total

So the bank could stand to make about €165K more interest by you yielding your tracker. I very much doubt that they would necessarily write that amount off your investment property mortgage - and they would also have to factor in waiving early fixed rate breakage charges and what they lose by not keeping things as they are on this front. But maybe these figures give you a starting point and some food for thought?

You don't explain the overall situation and why you want/need to do this - e.g. are you in arrears on either or both mortgages, are you struggling to pay them etc.


----------



## LDFerguson (19 Jan 2012)

Although the figures stack up, I'm not aware of any lender who's writing off debt on performing loans to buy out a tracker.  Some will do so if the loan is in arrears and there's little hope of repayment.  See this thread.


----------



## guerngirl (19 Jan 2012)

I'm not in arrears. Thanks to both this is v helpful


----------

