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

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?

Will bank "settle" a mortgage for a reduced sum?

Hi Michael, if you follow the link above you should find my previous thread on this subject.
In the event my collegue didn't follow up this idea with his bank but we would be interested to hear of your experience if you decide to pursue it.
JB

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.