Submit an offer to end tracker mortgage early? What to offer?

[twofor1]

Stats are: €175,000 outstanding over 15 years at 0.5% above ECB. "

If your lender was to offer you a 10% reduction to pay off your tracker in full now, do you have €157K to do so, without selling ? If yes, you might have a better chance of having an offer accepted.

If you don’t have the cash, and if it’s the case that you want to pay off your tracker early in order to move / separate /emigrate or whatever, you are probably going to do so regardless, in which case, would the bank not get the tracker off their books anyway, without any discount ?, and if they don’t, as others have stated, they are not now losing on them anyway.

No harm at all in trying though, all it will cost is a stamp, good luck.

 

[MrEarl]

One danish bank is in process of selling its loan book on
. There online acesss is wrapping up on December 4th
. so still holding out for the new year

That same bank "might" end up selling to another bank who remain open for business ... in which case the other bank makes a turn by buying the loan book at a discount to face value, but the borrowers continues on their existing loan agreement.

When did they announce they were shutting the online service ?


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Getting back to the discussion regarding potentially securing a discount on a Tracker ...

Has anyone actually had an offer to settle a performing Tracker Rate homeloan at a discount to full value actually accepted ? If so, with what Bank please ?

 

[TRS30]

In my experience BOSI are not doing deals on performing trackers either.

Not sure who your tracker is with however they have sold some loans to LONESTAR however I have no idea if they would offer a deal either.

 

[noproblem]

Is it possible that the banks have sold on a sizeable amount of their tracker loans to a third party? I've no doubt that behind the scenes there's a hell of a lot going on that the ordinary Joe Soap is not being told about at all, regardless of rules and regulations that are in place. A bit like NAMA, rules are invented to suit whatever crops up.

 

[BODN]

We tried this with Bank of Ireland and it was a straight up NO. We are not in arrears so maybe if we were they might have done a deal.

 

[cremeegg]

I have been thinking about this issue, i.e. making an offer to redeem my tracker mortgage for some time.

I believe that most posters on here are missing the point.

If you are considering making an offer the question you should ask yourself is what is it worth to me. It doesn't matter what the bank would accept, it will only cost a stamp to make an offer.

It is not easy to decide what it is worth to me. Certainly as a gut reaction I wouldn't even consider a 10% discount. I would need to get way better than that.

To try to improve on a gut reaction I have looked at various NPV calculations but none of them seemed convincing to me.

Finally I made a list of the future payments capital and interest I will have to make if the mortgage runs it course and looked at this as if it were a return on an investment. Now the question becomes what would I pay for this investment return, bearing in mind that the return is guaranteed.

To find out how much you should pay for the investment I used an Internal Rate of Return calculation. And played around with the redemption amount until I got an IRR of 4%. I see this as a good indication of how much I should offer.


Calculation was like this

Redemption amount €100

Interest year 1 €2
Interest Year 2 €2
year 3 etc
Final payment €200

IRR calculation

 

[Lifesapeach]

Hi All,

New user, so apologies if I have posted in the incorrect location.
I have a performing tracker mortgage - BOSI (0.9% Interest) 9yrs left 250k.

Before finding this forum, I offered BOSI the value of the properties securing the loan - 63,500. Reading through these posts, I realise it was probably way off the mark, but worth a shot and I don't really have much to loose.

What would people advise as next step, I see it that I could
1) make an increased offer with more realistic amount -NPV of loan
2) sit it out a few months to see if BOSI start to sell performing loans and then see how our offer would sit with take over company.

Has anyone experience of performing tracker loan deals with BOSI recently?