Has anyone approached Certus (BOSI) about a write down for giving up their tracker?

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TRS30

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Hi all

Has anyone approached Certus (BOS) about a write down for giving up their tracker?

I current have two tracker with them, 200K on + 0.7%- €730pm (C&I) and 230K on +1.5%- €535pm (IO)

Do you think they would entertain 300K in full payment?

If so do you think I could borrow 300K on 100K salaries, 30K saving and no other debt? BOI are doing 3.2% so would be circa €1,150 (C&I) over 30 years.

Thanks
 
Very doubtful. You are on a hundred grand a year and have significant savings. You are still able to pay the mortgages. No harm trying though.
 
Sunny said:
Very doubtful. You are on a hundred grand a year and have significant savings. You are still able to pay the mortgages. No harm trying though.
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Very doubtful they would entertain the idea or that we would be able to borrow the 300K ?
 
That they would entertain the idea. Why should they write down debt that you are well able to pay. People are overestimating how desperate the banks are to get rid of trackers. They won't do it at any cost.
 
TRS30 said:
...I current have two tracker with them, 200K on + 0.7%- €730pm (C&I) and 230K on +1.5%- €535pm (IO) ...
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Sorry for going off topic, but do you know why there is a such a difference in the rates you are being charged above ECB, i.e. +0.7% V's +1.5%?

Unfortunately I don't know the answer to your question but if I was in your shoes I would ask BOS on the basis that they would most likely reduce their mortgages to Irish customers and they don't exactly love trackers.
 
Sunny said:
That they would entertain the idea. Why should they write down debt that you are well able to pay. People are overestimating how desperate the banks are to get rid of trackers. They won't do it at any cost.
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I have heard that BOS want to get out of Ireland by winding down their loan book here.

Sorry for going off topic, but do you know why there is a such a difference in the rates you are being charged above ECB, i.e. +0.7% V's +1.5%?

Unfortunately I don't know the answer to your question but if I was in your shoes I would ask BOS on the basis that they would most likely reduce their mortgages to Irish customers and they don't exactly love trackers.
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One rate is on PPR and the other is a RIP.
 
Hi there,

Am curious as to how you got on with this? We have some money on deposit becoming unlocked in May and were thinking of paying off some of the 180k outstanding on a 2.5% ppr mortgage, did you enquire as to any deal for a lump sum payment?

Thanks in advance and apologies for dragging up an old thread, mods please delete if required.

TRS30 said:
Hi all

Has anyone approached Certus (BOS) about a write down for giving up their tracker?

I current have two tracker with them, 200K on + 0.7%- €730pm (C&I) and 230K on +1.5%- €535pm (IO)

Do you think they would entertain 300K in full payment?

If so do you think I could borrow 300K on 100K salaries, 30K saving and no other debt? BOI are doing 3.2% so would be circa €1,150 (C&I) over 30 years.

Thanks
Click to expand...
 
Hi

I think it might have been discussed elsewhere on AAM.

If you approach them, they will ask you to make an offer. People ask for a 20% additional write off and BoSI refuse it and ask for a more reasonable offer.

Brendan
 
Downwiththat said:
Hi there,

Am curious as to how you got on with this? We have some money on deposit becoming unlocked in May and were thinking of paying off some of the 180k outstanding on a 2.5% ppr mortgage, did you enquire as to any deal for a lump sum payment?

Thanks in advance and apologies for dragging up an old thread, mods please delete if required.
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I didn't talk to them in the end. I have not had a chance to sit down and really crunch the numbers on giving up the trackers and going onto a SV.

I hope to look at it again later in the year when wedding is over and things are a bit more settled.
 
Deano said:
It's over a year since this has been discussed. I wonder if anything has changed? Apart from the obvious - that the interest rate has reduced by 0.5% :)
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I am in the process of drafting a letter to them. I will update on any response I get from them.
 
Hi TRS30,

Great idea with the letter, please make sure that you will be clear with all what you are interested in and if you have any offer for them, put that on it. Certus, can not make decisions for BOS clients as they are not a bank, however, once you will write to them, they will send you standard financial statement form with thier cover letter to review your income & expenses. After they got that from you, they will complete an internal form on your behalf with decline recommendation as per my understanding BOS (since they left) let certus manage thier books with repaying current loans, mortgages etc. If, you are in arrears, they might offer you a forbearance for few months. If, you want sell your house/s and get write off on the shortfall, you need to cover 60% of the outstanding balance. Anyway, write to them and be aware that they are not in position to make a decision for you, however they keep BOS (thier client) happy, if you know what I mean.
 
Certus are mostly interested in managing the {problem} accounts.Suugest get your query to BOS.
You need to number crunch the {cost} to them for the remaining term. Then crunch the {profit} to you . Then send a letter to them, tell them your figures and make them an offer. PS . Make sure their response is from someone with authority , not just a generic/junior response.
 
panda36 said:
Hi TRS30,

Great idea with the letter, please make sure that you will be clear with all what you are interested in and if you have any offer for them, put that on it. Certus, can not make decisions for BOS clients as they are not a bank, however, once you will write to them, they will send you standard financial statement form with thier cover letter to review your income & expenses. After they got that from you, they will complete an internal form on your behalf with decline recommendation as per my understanding BOS (since they left) let certus manage thier books with repaying current loans, mortgages etc. If, you are in arrears, they might offer you a forbearance for few months. If, you want sell your house/s and get write off on the shortfall, you need to cover 60% of the outstanding balance. Anyway, write to them and be aware that they are not in position to make a decision for you, however they keep BOS (thier client) happy, if you know what I mean.
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I have drafted a letter to send to Certus however this has made me think again.

I am not in arrears and have no intention of filling out forms with income & expenses etc. They are lossing money on my trackers so want to see what they are willing to do to get me to give these up.

Thanks for the input and figures re short fall etc.

salmon9077 said:
Certus are mostly interested in managing the {problem} accounts.Suugest get your query to BOS.
You need to number crunch the {cost} to them for the remaining term. Then crunch the {profit} to you . Then send a letter to them, tell them your figures and make them an offer. PS . Make sure their response is from someone with authority , not just a generic/junior response.
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Another interesting point.

Any idea how to go about these calculations. I am reasonable with numbers however not sure how to go about calculating the cost to them and profit to me.

Any input would be appreciated. Also what department in BOS would be best to write to?
 
I would also be interested in how to calculate an offer. I have an interest only loan of €100k on tracker rate 1.75% due for repayment in 3.5 years and would repay earlier if the figure was right.
 
TRS30. I am in a very similar position to yourself. I owe BOSI just over €400k on ECB +0.75%. Like you I have been thinking about this without taking any action for too long.

My view on the numbers is, take BOSI cost of capital 4% at a guess (does anyone have any better suggestions), subtract the rate you are paying (ave 1.9% I calculate) Cost to them 2.1% of €435k is €9,135 per annum, the NPV of this at 5% is depends on how many years remain. For 20 years I calculate €113k.

That is the loss to them on the €430k over 20 years is worth €113k today. €430k - €113k is €317k. There would be no loss no gain for them to accept this figure, for an offer to be accepted you might have to leave them some "profit". I have no idea if they would accept an offer at this level. Or maybe they are desperate to get cash in and would accept a lower offer.

But don't forget if you just continue paying each month, this is the value to you of the cheap mortgage rate you have, don't give it away.

Please let me know how you get on. Feel free to pm me.
 
Riya99.

Cost to BOSI 4% - 1.75% is 2.25% on €100,000 = €2,250 per year. I am guesstimating the 4% cost of capital to BOSI but I suggest the other elements are correct.

Total discount

Year 1 .. ....€2,250
year 2 €2,250 discounted at 5% €2,137
year 3 €2,250 discounted at 10% €2,030
year 3.5 €1,125 discounted at 12% €990

Total discount required for BOSI to break even €7,407.

On further reflection, the cost of capital figure to use should be your cost not BOSI's. Where are you getting the money to repay the loan and what will it cost you, to borrow or in lost deposit interest.

I have not considered any tax implications.
 
cremeegg said:
TRS30. I am in a very similar position to yourself. I owe BOSI just over €400k on ECB +0.75%. Like you I have been thinking about this without taking any action for too long.

My view on the numbers is, take BOSI cost of capital 4% at a guess (does anyone have any better suggestions), subtract the rate you are paying (ave 1.9% I calculate) Cost to them 2.1% of €435k is €9,135 per annum, the NPV of this at 5% is depends on how many years remain. For 20 years I calculate €113k.

That is the loss to them on the €430k over 20 years is worth €113k today. €430k - €113k is €317k. There would be no loss no gain for them to accept this figure, for an offer to be accepted you might have to leave them some "profit". I have no idea if they would accept an offer at this level. Or maybe they are desperate to get cash in and would accept a lower offer.

But don't forget if you just continue paying each month, this is the value to you of the cheap mortgage rate you have, don't give it away.

Please let me know how you get on. Feel free to pm me.
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Cremeegg; Thanks for the reply.

I assume when the loan was taken out with BOSI will impact on the cost of capital? Both my loans were taken out in April 2008.

200K is ECB +0.75% and 230K is ECB +1.25% so that will alter the figures as well.
 
Cremeegg,

Interesting posts - would you be bale to do a line by line breakdown for how it was calculated (brain not firing on all cylinders today). Where do you get the 5 / 10 / 12% discount rates etc?

K
 
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