Are BOS doing write off deals??

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gigi

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Hi there, first time using this forum so I hope I'm in the right place for this question. We recently had our house valued as they seem to be selling well in our area and we are outgrowing the space with our small family. Our mortgage is at €415K and the valuation was for €280K but could possibly achieve €300K based on recent activity in the market. Is there any chance at all that BOS would write off the balance (approx. 25-30%)? Alternatively, would they let us load a portion of negative equity onto another mortgage we have with them (an apartment my husband had bought/lived which we rent out now and would also be in neg equity). We have no issues making repayments, just keen to trade up while prices are low and only starting to think about ways to deal with our negative equity. I'm sure it's wishful thinking on my part! Any insight/experience of this would be much appreciated!
 
To the best of my knowledge they are not doing deals - and if you are making payments they certainly wont be thinking of doing a deal or offering a deal.

They are unlikely to go with the alternative proposal you outline -again, there is nothing in it for them-advancing more money to someone that may already be in significant negative equiity. in any event putting the negative equity on the second propery would not enable you to write off the interest for tax purposes (if thats your thinking)-only money borrowed to buy that property is elegible for inculsion in the tax return.

If the 2nd property is in positive territory the best option is to sell it and apply the surplus against you PPR.
 
HI gigi

BoS are not giving discounts at the moment.

Do you have a cheap tracker? They might do deals on cheap trackers at some stage in the future. So if you have spare cash, don't pay it off your mortgage, save it somewhere else.

If you want to sell at a loss of €120k and add that to the investment apartment, they might agree to do it. They get rid of a tracker and you continue to make the repayments.

You should read this Key Post, which treats the issues in a systematic manner.

Apartment too small for my family - what are our options?

Brendan
 
Hi Brendan,

How do you know that BoS are not doing deals?

I have an extremely advantageous tracker with BoS and I am hoping to do a deal with them.

In recent weeks I have spoken to 2 well known auctioneers and a well accountant and also a man with a phone number.

They all say that BoS are doing deals. And certainly deals on commercial properties have been reported in the press.

Do you have definite knowledge that BoS are not doing deals
 
cremeegg said:
In recent weeks I have spoken to 2 well known auctioneers and a well accountant and also a man with a phone number.

They all say that BoS are doing deals.
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I wouldn’t believe anything from an auctioneer, a well accountant or a man whose only qualification is a phone number.
 
twofor1 said:
I wouldn’t believe anything from an auctioneer, a well accountant or a man whose only qualification is a phone number.
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Indeed, but does Brendan have any concrete information to support his assertion that "BoS are not giving any discounts at the moment.

I called BoS and asked them that question. The response was "you send us a proposal and we will consider it".

The question is what type of proposal are they likely to accept.
 
I have seen a case of a BTL where BOSI gave a discount on a mortgage, customer refinanced elsewhere and cleared it off. Can't remember the actual amounts unfortunately but there was definitely a discount.
 
cremeegg said:
The question is what type of proposal are they likely to accept.
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Something along the lines of I will pay you back what I owe you in full and final settlement should make them consider it.

Joking aside, they are not doing deals on residential property. The commercial book is a totally different ball game for them.

There are loads of posts here asking the same and those that approache the bank were told by BOSI - no deals.

Where there is substantial arrears, they may short settle following a sale, but if you are paying in full, on time, why would they do a deal? Early repayment of a tracker for them is not such a big win for them-they get funds from the B of E, so they are not as caustic to their balance sheets as with the Irish banks, who are not doing deals either. That may change, but for now, it's the position.
 
BOS are doing deals on commercial but are very limited in the ways that they do deals on residential.
However, there are circumstances in which deals can be done. But they are limited.
They do not do deals based on the fact that you have a tracker.
 
Thanks Luternau for taking the time to respond.

Luternau said:
The commercial book is a totally different ball game for them.
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Is it? That is what the man with the phone said too, but how do you know that this is the case.

Luternau said:
There are loads of posts here asking the same and those that approache the bank were told by BOSI - no deals.
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I approached the bank and I was not told no deal. I was told "make us a proposal"

Luternau said:
Early repayment of a tracker for them is not such a big win for them-they get funds from the B of E, so they are not as caustic to their balance sheets as with the Irish banks.
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I didn't know this, are they getting cheap money from Bank of England? Are they under pressure to repay that?
 
Commercial said:
BOS are doing deals on commercial but are very limited in the ways that they do deals on residential.
However, there are circumstances in which deals can be done. But they are limited.
They do not do deals based on the fact that you have a tracker.
Click to expand...

As I said I have taken a lot of advice on this matter. Basically the advice I have received comes in two types.

Type 1. "The business case".You have a tracker at an extremely low rate and it would make sense for BoS to accept a settlement figure for this. Make them an offer that might make business sense for them.

Type 2. "The begging case". Plead poverty. Tell them that you will be unable to continue making payments and that if they don't do some type of deal they will end up in a forced sale situation.

I am more comfortable with the business case, but basically I am being advised to put on the poor mouth.

On what basis do you understand them to do deals Commercial
 
All banks are open to doing deals. From my experience very few are currently taking the tracker rate as an issue in respect of decisions. The ultimate decision is whether it is more beneficial to the Bank to agree a settlement now rather than a longer term work out where further risk of loss is an issue. BoS were up to recently being quite agressive in discounting loans in return for quick clearance. They appeare to have pulled back from this activity in the personal mortgage market recently. However if the deal does make sense the bank will consider it. They will not write off any balance up-front unless the balance of the loan is being discharged in the short term.
 
@cremegg
Who is 'the man with the phone' ??

Commercial is always different to residential. You only have to look at the IBRC liquidation to see that!

Of course it would be good to get a deal, whether on a tracker or variable, but it has to be within reason. (they are hardly likely to agree a substantial discount and it would be to settle in full. If you don't have the cash, you must borrow it, and unless the loan is less than the current value, it's going to be hard to refinance. If you do, you won't top the tracker rate. Catch 22.

BOSI are not an Irish bailed out bank, so they have access to Bank of England funds. Totally different ballgame to Irish banks that cant get money at a rate anywhere close to ECB plus the margin. It would make sense for Irish banks to look at this, but to date it was only PTSB that did a 10% bonus on lumpsum payments off mortgages a few years back.
 
I have dealt with BOS a large deal and they will not do a deal on trackers, unless you are selling your house, they might cut 5% off.
However, if I had a mortgage with BOS I would sit tight as they have €300m of their residential loan book up for sale and they will eventually sell the full loan book, I believe.
Those on trackers IMO could be approached in the coming years with "offers" to come off the trackers as the PTSB did, but I would expect they will be more attractive.
It may not happen, but I think this is definitely what the Irish Banks may have to do in order to be profitable again.
As Luternau pointed out it is more possible with Irish Banks than with BOS
 
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