CnocAmhran
Registered User
- Messages
- 4
"There is no point in approaching Bank of Ireland. They will not do a deal. They have such a low cost of funds, that tracker mortgages are not loss making for them any more - especially if they are not in arrears."
Hi Brendan,
Regarding your comment above, are you saying if the tracker mortgage in not in arrears that the banks won't do a deal if you have a lump sum that you can put against this mortgage. Have things changed in that the last few years in that banks are now getting cheap funds from Europe that they no longer need to worry or give incentives to pay down tracker mortgages early.
Currently I have 2 tracker mortgages neither of which is in arrears; one with Bank of Scotland which is on my main residence and is Interest only for €275k, my other tracker mortgage is with PTSB on an investment property, is Capital & Interest repayments and is for 220k. There is about 15 years left on each mortgage. I currently have savings of €150k approx which is currently generating very little return.
Last year I wrote to PTSB offering to reduce my tracker mortgage by €150k if they incentivised me to do so, PTSB wrote back saying that at that time they were doing no deals for paying down tracker mortgages early. I'm not really interested in clearing down the Bank of Scotland tracker mortgage on my main residence as it is Interest only.
The question I am asking is, in your opinion has the ship sailed in relation to doing deals with banks in regards to paying down tracker mortgages early? or should I hold tough for another while? or should I look elsewhere for other investment options that will give me a better return than what I am currently getting on my savings?
Hi Brendan,
Regarding your comment above, are you saying if the tracker mortgage in not in arrears that the banks won't do a deal if you have a lump sum that you can put against this mortgage. Have things changed in that the last few years in that banks are now getting cheap funds from Europe that they no longer need to worry or give incentives to pay down tracker mortgages early.
Currently I have 2 tracker mortgages neither of which is in arrears; one with Bank of Scotland which is on my main residence and is Interest only for €275k, my other tracker mortgage is with PTSB on an investment property, is Capital & Interest repayments and is for 220k. There is about 15 years left on each mortgage. I currently have savings of €150k approx which is currently generating very little return.
Last year I wrote to PTSB offering to reduce my tracker mortgage by €150k if they incentivised me to do so, PTSB wrote back saying that at that time they were doing no deals for paying down tracker mortgages early. I'm not really interested in clearing down the Bank of Scotland tracker mortgage on my main residence as it is Interest only.
The question I am asking is, in your opinion has the ship sailed in relation to doing deals with banks in regards to paying down tracker mortgages early? or should I hold tough for another while? or should I look elsewhere for other investment options that will give me a better return than what I am currently getting on my savings?