# What would you offer your bank to clear your tracker mortgage



## Flute

Hi Guy’s

Just looking for people’s opinions on this.

Back in 2004 I took out a variable mortgage with AIB for around 130,000 euro, then in 2006 I took a second mortgage from AIB for 110,000 euro first 3 years were interest only.

 I took an extra 15,000 on the first mortgage which brought it up to around 145,000 and changed into a tracker mortgage, I think the rate is +.95%

The second mortgage is currently fixed for 5 years at around 6% (can’t remember the exact rate) I think higher than usual because it is an investment mortgage, since last April.

Currently on the tracker mortgage I have 120,000 euro left, and on the investment one about 100,000.

As they are supposedly losing money on these trackers and would like to get people of them. The question I have is if I went to AIB and said I want a deal to pay of my tracker mortgage completely what would be a fair offer. 

I was thinking between 80,000 – 90,000, closer to 80,000.
If I paid on average of 600 a month by 96 months (8 years so far) = 57,600 + 80,000 = 137,600.
They would be down about 7,000 from the total of 145,000 I don’t know over the lifetime of the tracker would they lose  more than that but if I keep going with the investment mortgage they would more than make up for it.


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## Brendan Burgess

AIB are just not doing deals for early repayment of trackers, so it really doesn't matter what you think is a fair price.


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## Eithneangela

I'm glad to learn that AIB are not doing deals - we own AIB - so if they do deals, then we, as taxpayers, have to pay for those deals. I reckon you just need to pay what you're due to pay for the foreseeable.


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## jcash

is boi doing deals


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## Flute

Thanks Brendan.

Eithne fair point but if the banks are also losing money on trackers are we the tax payers not also picking up the tab for that.


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## Eithneangela

Yes, you're right of course - I just don't see that it could be fair to allow people who have 'Bertie - ie shoebox - money, to get a big reduction while the rest of us are diligently trying to pay the mortgage - even it it is a tracker!


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## serotoninsid

Eithneangela said:


> we own AIB - so if they do deals, then we, as taxpayers, have to pay for those deals.


Well, it's been discussed on aam before with many believing that it would be a win/win for bank and client - and others who say that over the longterm, banks really are not going to be taking such a hit on the cost of money (don't understand this - but then I defer to folks who have more in depth knowledge of such things).  However, if they did start to consider doing deals, there is upside for both parties - so  no give away here.



Eithneangela said:


> I just don't see that it could be fair to allow people who have 'Bertie - ie shoebox - money, to get a big reduction while the rest of us are diligently trying to pay the mortgage - even it it is a tracker!


A bit of a generalisation (or maybe it's just me that has slogged it out to save some modest 'shoebox money' which I'd like to throw at the mortgage)....?


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## Flute

Have to agree with both points serotoninsid.
Win win for bank, customer, and tax payer.
And it ould be nice to get a bit of break in the times that are in it, worked hard for every penny in my shoebox.


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## potnoodler

Not to mention the tax payer is paying 30% of the interest on a lot of these mortgages


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## serotoninsid

Yorky said:


> Have NIB changed their stance on early redemption discounts?


Run a search Yorky - a couple of relevant threads on this.  Last time I checked with them was approx 3 months ago (I *think*) - and no dice.


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## RichInSpirit

@ Flute.
I have an idea for you, where you take matters into your own hands.
If say you consider that 90% of your mortgage would be be a fair value to repay , just repay the 90% and continue paying off the remainder over the original lifespan of the mortgage. ie. paying a much reduced sum.
You wouldn't be doing anything contrary to the spirit of the mortgage. In time the company may get fed up of receiving such a small sum of money that they settle with you.
Just a suggestion


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## Bronte

Why would you want to pay off a tracker earlier in any case, it's very cheap money.  It's a way of paying off a loan really easily.  Inflation might even be beating it.  You'd be better off concentrating on what to do with the 80K you have, how much of a return you are getting on that.


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## Pope John 11

Flute said:


> Thanks Brendan.
> 
> Eithne fair point but if the banks are also losing money on trackers are we the tax payers not also picking up the tab for that.



I don't believe for one second that the taxpayers are paying for the losing trackers, but I do believe that people like me and others on variable rate mortgages are paying for these trackers


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## serotoninsid

Pope John 11 said:


> I don't believe for one second that the taxpayers are paying for the losing trackers, but I do believe that people like me and others on variable rate mortgages are paying for these trackers


I disagree.  If there were no tracker mortgages, then we - like you - would all be paying the rates that you currently have the misfortune to be paying.


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## kbie

Yorky said:


> I can't see how they have "misfortune" unless a tracker mortgage was unavailable at time of application. If they opted for a standard variable rate then that was their choice.


 
I was on an AIB variable initially, but while watching the markets discovered trackers were available. I applied and thankfully, was switched to a tracker.


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## serotoninsid

Yorky said:


> I can't see how they have "misfortune" unless a tracker mortgage was unavailable at time of application. If they opted for a standard variable rate then that was their choice.


I think it could well be deemed 'misfortune'.  I know in my case - if it wasn't for AAM, I may never have been on one!  Granted, there was a time when that advertising campaign ran i.e. "I don't know what a tracker mortgage is" ...but for folks that went looking for a mortgage before this, I think there is every reason to believe anyone of us could have ended up on SVR.  Thanks to info posted by others here, I was able to get the best deal going - and then switch within the space of 24 months - to a new product that bettered that again.  At a later point, trackers were removed from the market - so anyone taking a mortgage more recently has no option but to take SVR (if they can get one at all!).


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