Danske Bank/NIB to close down - hold onto your tracker

Hello,

I am also the very fortunite owner of a low margin ECB tracker (which has many years to run ... although sadly I'll need all of that term, to repay the overall debt needless to say).

I must admit, it will take one hell of a large financial incentive (after any potential tax liability) before I would even dream of permitting them exit their mortgage contract with me.

We will never have the opportunity to borrow money at such low rates again, as the rates those of us with low margin ECB trackers currently avail of, so remember just how valuable they are before you consider giving them up :)

As an aside, Brendan I note your quote above .... it might be interesting to get a view on the difference between debt forgiveness and the offering of a concession in return for early redemption of the debt, given there is a benifit passing to Danske in return for releasing them early from a low margin loan.

Also, one must ask what happens if debt forgiveness happens in part or full, as part of an overall scheme of arrangement - do the potential tax implications then fall away automatically, or do they have to be specifically mentioned and agreed with Revenue as part of the overall arrangement ?
 
It'd be interesting to have insight into the banks thought process on this.

If they offered reductions in debt for early repayment, it'd obviously be all those with the repayment capacity who take up the offer leaving an extremely risky mortgage book behind.

I suppose they could consider something different than complete early repayment - such as a free house revaluation and discount for bringing your mortgage back down to 80% LTV. An offer such as this would leave a more attractive loan book to offload to a potential buyer, i.e. a significantly reduced number of properties in negative equity.

As Brendan says, this is jumping the gun a bit - but an interesting topic nevertheless.
 
ronaldo said:
Current rules require you to either have a fee-paying current account from which your mortgage is paid or a non-fee-paying account from which ONLY the mortgage is paid, i.e. a mortgage servicing account.

This results in the need for standing orders and the amending of standing orders when interest rates change.

I wonder, now that they've made this announcement, will they allow direct debits for your mortgage directly from an external account? It'd make life a lot easier.
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I've been doing this ever since they scrapped the fee-free banking, although I had to fight with them all the way, and lodge a formal complaint. I think at that stage they just wanted to close the dispute. :D

I imagine it'll make a lot more sense for them now to offer the same choice to all their mortgage customers — what's in it for them to keep operating thousands of fee-free servicing accounts?
 
Have been in in touch with Danske and they say they have no interest in doing any deals on trackers so that puts that one to bed.............
Has anyone noticed on their tracker mortgages that they have not taken any payment out since the announcement............. mine is normally deducted weekly but has not been deducted in over 10 days and no pending payments showing.........
 
gimp said:
Have been in in touch with Danske and they say they have no interest in doing any deals on trackers so that puts that one to bed.............
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Not necessarily. If they are palmed off to a third party, the third party may deal.

gimp said:
Has anyone noticed on their tracker mortgages that they have not taken any payment out since the announcement............. mine is normally deducted weekly but has not been deducted in over 10 days and no pending payments showing.........
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Nope. My mortgage payment went out this morning.
 
Mortgages and long-term business loans will either be off-loaded to a third party or refinanced by customers.
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I think that this is a clear sign that they don't intend to simply manage the book down over a number of years as BoSI seems to be doing.

If a third party buys the mortgage book, they will be looking for a quick profit, so I would say that they would accept offers. They will pay very little for trackers even if they are performing.

This could be a win-win-win for everyone, if Danske gave people on trackers a discount to switch to SVR. And then encouraged one of the other lenders to take over the mortgages.

  • Danske would get more than they would get from selling the book
  • The borrower gets a good discount
  • The new bank gets a profitable customer
Brendan
 
Danske Trackers ...

Good point Brendan ... really these Trackers are a pain in the neck for Danske, its going to cost them whichever way the play it now that they've decided to exit the market.

Having said that my own experience of NIB / Danske is that they dont tend to offer great deals ...to date it hasn't being their culture to give large mortgage discounts and realistically if they wanted any existing tracker mortgage holder to switch to SVR the discount would need to be large % before anybody would consider switching to SVR.

Here's hoping but i cant see it happening ...i'd say they'll sell the lot as a package and the buyer will simply realise their profit over the remaining life of the mortgage book.
 
They will get such a poor price for their tracker book, they would be crazy not to try to do some sort of deals.

Buyers will only want a quick profit - they won't want to realise profit over a 20 year run down period.

Brendan
 
Funny always remembered when I went to switch into nib in 06 the mortgage it advisor Didnt know the exact ECB rate , I told her and asked her what was in it for them with a .5% over ECB rate ,
She said that they would hope we d be doing other business with them instead
Sounded mad even then
 
Brendan Burgess said:
I think that this is a clear sign that they don't intend to simply manage the book down over a number of years as BoSI seems to be doing.

If a third party buys the mortgage book, they will be looking for a quick profit, so I would say that they would accept offers. They will pay very little for trackers even if they are performing.

This could be a win-win-win for everyone, if Danske gave people on trackers a discount to switch to SVR. And then encouraged one of the other lenders to take over the mortgages.

  • Danske would get more than they would get from selling the book
  • The borrower gets a good discount
  • The new bank gets a profitable customer
Brendan
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hi brendan, all,

has anyone any knowledge of danske doing deals at this stage?
Or, does anyone know when they will be offloading their mortgages?

many thanks,
rusty
 
rustyjack said:
hi brendan, all,

has anyone any knowledge of danske doing deals at this stage?
Or, does anyone know when they will be offloading their mortgages?

many thanks,
rusty
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Hello Rusty,

No, I have not heard of anyone getting a deal and I have not been approached myself. Personally, I would sit tight until they contact you, thats what I intend doing.

I struggle to believe that Danske will sell their loan book(s) easily, not alone for any sort of price that the owners could possibly accept without reporting a massive write off in their financial accounts, so unless Brendan is wrong and they later change tactics (following the BoS model perhaps) then I imagine we will all be hearing from Danske soon enough, offering incentives to repay early.
 
MrEarl said:
Hello Rusty,

No, I have not heard of anyone getting a deal and I have not been approached myself. Personally, I would sit tight until they contact you, thats what I intend doing.

I struggle to believe that Danske will sell their loan book(s) easily, not alone for any sort of price that the owners could possibly accept without reporting a massive write off in their financial accounts, so unless Brendan is wrong and they later change tactics (following the BoS model perhaps) then I imagine we will all be hearing from Danske soon enough, offering incentives to repay early.
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thanks Mr Earl,
Sounds like the best plan alright.
Rusty
 
hi all

I know this is hypothetical but what would the expected discount be should there be an offer to move customers from trackers ?
 
nutsnbolts said:
hi all

I know this is hypothetical but what would the expected discount be should there be an offer to move customers from trackers ?
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How long is a piece of string ? :)

(Sorry for the response, but you may aswell guess the lotto numbers, there is absolutely no way anyone can know until the day Danske possibly contact you and offer you some form of discount).
 
Anyone hear anything on this?
Have our accounts with them for 12 years now and an offset mortgage since 2005.
I am self employed so all my money goes in to my account and I pay my VAT and Returns out of that, so by the 3rd quarter I have a good chunk of money to offset.
Also we moved our money out of a savings account and into my wifes.
So currently we have 37% of the value of the mortgage in our accounts and back in October that was at 46%.

It will be a massive loss for us in this regard.

Have heard nothing at all from them.
 
They pretty poor at any form of communication , but then what they say are lies
Anyway , hear most from morning Ireland and then onto aam
 
It still on their site that we need to change, but I have heard zero.
I checked back over my monthly statements from them and they outline the amount you saved on interest, over the last 2 years its averaging out at 294 euros per month. Over the 25 years left thats 89k euro
 
Looks like Danske Bank are giving deals to business customers. Wonder will Tracker customers be next??

"The Sunday Independent understands the deal is expected to be closed within the next 48 hours and that it includes a €10m debt write-down and more favourable repayment terms over the lifetime of the loan.
This development is a significant boost for the FAI which has always insisted that it would be debt-free by 2020. The restructuring of the loan will bring an end to the Association's arrangement with Danske Bank."
 
Danske Bank Deal

Update

24 December 2013
THE FAI has secured a hugely significant deal with its banks to write-off debt worth €12.5m.
The Irish Independent can reveal that the football association came to an agreement on the write-down of its loan at lunchtime yesterday, after almost six months of negotiations with Danske Bank.
A source close to the talks said the successful renegotiation of the FAI's loans, which now stand at €43m, leaves the association "in a very good position to achieve the objective of being debt free by 2020".
"This was a phenomenal bit of business when you think about it, almost a quarter of debt reduced following months of intensive negotiations," said the source.
FAI accounts for 2012 showed it owed €59m on the Aviva Stadium, which had put the deal in a perilous position.
However, continued negotiations -- in which businessman Dermot Desmond and owner of St Patrick's Athletic Garrett Kelleher had been "very helpful" -- brought the deal to a successful conclusion.
The FAI is now in a very positive financial position.
The new deal for the FAI and chief executive John Delaney leaves the association with lower interest payments based on a smaller borrowing principle. The FAI is believed to have changed its bank from Danske Bank as part of the deal.
 
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