Writedown of PTSB Tracker Rate Mortgage??????

Recently I wrote to PTSB offering, in return for a writedown to lodge 150k against the outstanding amount of €210k on my Tracker Mortgage which has 15 years left to run with PTSB.

The reply I received from PTSB was,

"I wish to advise that there are currently no plans to reintroduce the 10% Tracker Mortgage Overpayment Bonus, however Permanent TSB is considering various deleveraging opportunities and if an offer were to be made available we would notify all eligible customers accordingly."

I also submitted a similar request 2 years ago which generated a similar reply from the PTSB bank with the exception of not mentioning the possible deleveraging opportunities in their reply 2 years ago.

The cost of funds for all the banks has reduced dramatically. For ptsb, it is around 1%, so they are not losing much if anything on tracker mortgages. There is no incentive for them to offer an incentive to get rid of these trackers.

Brendan

What does the PTSB bank mean ragarding deleveraging opportunities?, is there a possibility PTSB may sell off some of their Tracker loan book at a discount in the future and in that way one may benefit from a discount?

Very unlikely, but I suppose it's possible. I think that they might like to sell it to the ECB at par value, as has been suggested by Brian Hayes M.E.P. but they don't need to deleverage any further.

Hi

Just saw this thread now. I am in a similar situation to CnocAmhran and am keeping a watching eye on PTSB.

The interest rate I pay to PTSB is 1.1% (I know that others pay less) and I was interested in Brendan's comment that PTSB can access funds for around 1%. I am no expert in the area, but this seems cheap to me. The NTMA recently bought 15 year bonds at 2.2% and I would have thought that Ireland inc might be able to borrow cheaper than PTSB? I know that PTSB will have various sources of funding, including very low rate deposit and current accounts, but I would have thought that they must borrow siognificant amounts in the markets / through inter bank loans?

Assuming Brendan's 1% estimate is correct, in my case where I borrow from them at 1.1%, would PTSB's margin of 0.1% even covers their costs?

Any views?

Customer deposits, including current accounts, represent the primary source of funding for PTSB and (ultra-cheap) ECB funding remains material. Given the very significant cuts to PTSB's deposit rates in recent months, I would suspect that their current cost of funds is less than 1% and I don't think there is any realistic chance that PTSB would offer a discount for an early redemption.

Incidentally, we had a lengthy discussion on this topic here:

http://www.askaboutmoney.com/threads/are-the-lenders-losing-money-on-tracker-mortgages.193149/

Cnoc &Ballycumber.

Banks are no longer (losing) on funding trackers ,as the thread shows.
They ain,t making money either but
I assume people like yourselves are not in negative equity so by keeping your loans on banks books , can a Bank not say their overall loan book is in a better shape, whereas if they let good customers like yourselves escape their book of loans diss-improves which then impacts on their future funding costs?