Repaying a tracker?

[davep]

I was wondering about the possibility of repaying a tracker. I know that everyone says that with the rates going down that Trackers are like gold dust. However I wanted to ask for some advice on trying to approach my bank and do a deal. I again know that they "are not doing deals" however I am not convinced of this. My details are that I have a mortgage of 114k for next 8 years. Monthly repayments of €1104. My rate will be going to 1.1% with the reduction just announced of .25%.
I am in the lucky position of being able to repay the mortgage if I want. I have on deposit with An Post 3 year bonds at 3.61% (tax paid) at the moment. What figure would be reasonable to approach the bank with to clear the mortgage given that they could then loan that lump sum out over the same period and gain more than I will repay in interest.
Any advice would be great
Dave

 

[serotoninsid]

There's a key post on calculating the real value of your tracker - run a search on aam for it.

As regards deals being done, I doubt it - there have been plenty of reports of people approaching their bank (including myself) but no report of success. Of course there may be isolated instances of deals having been done - but IF they do exist, they must be exactly that i.e. isolated.

The only deal that was ever offered officially was the one PTSB offered a couple of years back. From what I could gather at the time of it being discussed here, their offer didn't come near the real value of their customers' tracker mortgages.

Personally, I'm planning on keeping cash on account - and ultimately using it - rather than paying off the tracker. It's the cheapest financing I will ever get - so plan on going the full term with it without any overpayments.

 

[idkwatmi]

I cant see the bank doing a deal when you are capable of paying the mortgage off. Once they know your good for the money then they are happy to keep you on the books. Its the loans they think they wont get paid on where they might do some kind of restructure or deal.