Ask Ulster Bank for a discount to redeem mortgage

QWERTYKEYBOARD

New Member
Messages
2
Hi All,
Any chance UB would be open to offers on outstanding mortgage balances?
Say you owe then 200K, offer then 150K.
Get the 150K from different bank via new mortgage.
If yes - would it be worth if if you have a tracker?
Rgs, Sean.
 

noproblem

Frequent Poster
Messages
2,145
Hi All,
Any chance UB would be open to offers on outstanding mortgage balances?
Say you owe then 200K, offer then 150K.
Get the 150K from different bank via new mortgage.
If yes - would it be worth if if you have a tracker?
Rgs, Sean.
There's only one way to find out and it will be interesting to read the reply you get. Good luck.
 

Leper

Frequent Poster
Messages
1,435
If I know the banks . . . your UB mortgage may be heading for a Vulture Fund. Sorry!
 

EasilyAmused

Registered User
Messages
94
The banks didn’t do deals like this during the banking crisis, they’re unlikely to do them now.
IMO if you offered UB €200k they’d refuse.
 

Merowig

Frequent Poster
Messages
318
No reason for any bank to do that. Why should they?
That is an offer easily to be refused.
If you are on a fixed rate you can overpay and as stated here you might look to have to pay a break fee.
 

Niall56

Registered User
Messages
27
I know someone who got about €10,000 written off their mortgage when Danske left but the mortgae balance was pretty small at that stage- under €50,000. I can't see a bigger operator doing that.
 

SBarrett

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3,651
I know someone who got about €10,000 written off their mortgage when Danske left but the mortgae balance was pretty small at that stage- under €50,000. I can't see a bigger operator doing that.
That's still a 20% discount, which is pretty good.

It is pointless just picking a round figure. It won't be taken seriously. Work out the net present value of the total repayments that are due and offer them something a bit over that. That way they still make a profit on the amount. They all have deep pockets and have absolutely no reason to give you a discount on a performing loan.


Steven
www.bluewaterfp.ie
 

_OkGo_

Registered User
Messages
192
Any chance UB would be open to offers on outstanding mortgage balances?
Say you owe then 200K, offer then 150K.
Get the 150K from different bank via new mortgage.
If yes - would it be worth if if you have a tracker?
The chances are very very close to zero...

If you are in a position to get a new mortgage of €150k then you are not really in any financial difficulty and UB would have no incentive to do this.

Even the mechanics of it would not work as for a switcher (as I understand it), the new loan amount needs to match the existing loan amount. So you would need UB to write off €50k on the assumption that you follow through and switch.
 

Brendan Burgess

Founder
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42,990
1) Performing non-tracker mortgages are very profitable. I suspect that the buyer will pay a small premium for them. So it's unlikely that Ulster Bank would sell for less than the amount owed.

2) Performing tracker mortgages are a different matter. They are still profitable, but I doubt that they will be sold for their nominal value.

If I were AIB, I would prefer to buy a portfolio of non-tracker mortgages than tracker mortgages.

So Ulster Bank should offer a small discount for early repayment of trackers. The problem with that is that it would be self-selecting. People with no intention of overpaying won't avail of it. People who are planning to trade up, would grab any discount.

Brendan
 

argolis

Frequent Poster
Messages
67
I was told by a vulture fund rep that they wouldn't cut a deal on our performing loan. I couldn't afford it anyway but I was interested to see would they take an instant profit considering they bought the loan book from IBRC for something like 52c on the euro. He did say they had made a number of deals with people with non-performing loans though.

It seems to me that if you don't mind tanking your credit rating for years and are willing to play a game of arrears, court threats, etc, then you might get them to agree to a discount deal but otherwise you're a cash cow. For a non-tracker mortgage that is, as was pointed out above. Also, if you had the money to cut a deal I'm not sure why they wouldn't chase you for it in court but given that he said they had cut discount deals, I assume they'd rather not bother with the hassle and just book their profit there and then....
 

Dazzler123

Frequent Poster
Messages
70
No bank would do a deal of that nature on a performing loan. It doesnt make commercial sense in normal times.

Now, ulster wont do a deal on a performing loan, mainly because for an impending loan sale, which is likely, performing loans increase the value of the potential loan book.
 

skrooge

Frequent Poster
Messages
259
If I was NatWest trying to sell a loan book -for a profit I might add - why would I undermine the value of the portfolio by offering unnecessary discounts.

Yes they want out but they're not stupidly going to burn money running for the exit.
 

Leper

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1,435
No bank would do a deal of that nature on a performing loan. It doesnt make commercial sense in normal times.

Now, ulster wont do a deal on a performing loan, mainly because for an impending loan sale, which is likely, performing loans increase the value of the potential loan book.

Am I right?
A mortgage is up to date with repayments coming in every month. The good mortgagee wants a deal in which to pay off all he owes early to a bank that's going out of business. And he is not going to get a deal because he has made all his repayments todate.

But, a mortgagee defaults on repayments and the bank will make a deal.

The overriding message I'm getting is (a) The mortgagee is honest and smart - too bad!
(b) The mortgagee defaults and perhaps through dishonesty - he gets rewarded by the bank.
 

MrEarl

Frequent Poster
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2,030
Hello,

I have it on very good authority, that UB will not be agreeing to any discounts for early repayments, on performing homeloans - be they trackers, or otherwise.

As mentioned elsewhere, there are issues to be addressed with certain types of homeloans, but it will take a couple of years before those issues are even considered, so don't waste any time asking for discounts, at least this year.
 

QWERTYKEYBOARD

New Member
Messages
2
Thanks all for you inputs - I asked the question originally as I have an offset tracker from first active.. so this thread and the offset tread are very interesting reads...
 

Monbretia

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Messages
1,968
Thanks all for you inputs - I asked the question originally as I have an offset tracker from first active.. so this thread and the offset tread are very interesting reads...

Sit tight so and wait and see, the offset will have to have some sort of a fix but could take years, UB/RBS never moved fast and I presume Nat West will be same!
 
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