€100k 30y tracker ECB+0.55% LTV<50% 3y ago. Bank losing money. Would they cut a deal?

M

Michael

Guest
I have a 100000 30 Year mortgage at a rate of ECB + 0.55% . I got it at an LTV < 50% 3 years ago. The rate is so good it is pointless paying it off as any savings that I have, can be invested at a Tracker Savings Rate higher than the Mortgage rate.

The Bank must be operating at a loss on my loan. The question is, does anyone have experience of a bank offering a customer a deal to pay off a loan for less than the amount owed (to cut their losses early).

i.e I pay 90 -95K now and they write off the final 5k - 10k.

Any advice would be welcome ?

Thanks.
 
Re: Would bank cut a deal?

hi have no experience but its an interesting idea. The banks are not making any money out of you so perhaps they would be open to a deal. The only problem is what sort of a deal would you like you are already winning and the bank are unlikely to enter into any deal that will cost them more money.
 
Re: Would bank cut a deal?

If they offered some money off the loan I would consider paying it off now, rather than making a small gain on equivalent savings (with the same bank) every year for the next 27 years, before I pay off the capital sum. But has anyone ever heard of such an offer from a bank?
 
Re: Would bank cut a deal?

If you do a search this has been discussed before - I think the consensus was that the bank won't do such a deal.
 
Re: Would bank cut a deal?

hi michael quick question do u have 95k to clear ur mortgage ? are you still getting trs ? if you factor the trs and the interest on a higher savings account it would prob be in ur interest to stay with the tracker
 
Re: Would bank cut a deal?

I could pay the loan off and would like to as I would be debt free the for the first time of my working life. If I could get say 10 grand off the debt now it would (for me phsychologically) outweigh the possible gain of 500-1000 per annum (On 90000) for the next 27 years.
 
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