Has anyone negotiated a discount for paying off an EBS tracker mortgage?

[Bikini Widow]

Hi all,

I have an EBS tracker mortgage on my principal residence, with approximately €135,000 outstanding and around 10 years remaining.

I am considering using proceeds from the sale of an inherited second property to make a substantial partial repayment or clear the mortgage in full. I have confirmed that there is no overpayment penalty.

My question is... Before contacting EBS, does anyone know of anyone who successfully negotiated a reduction in the outstanding capital, or another financial incentive, in return for voluntarily redeeming a tracker mortgage?

I would be particularly interested in:

• Actual experiences with EBS, although examples from other lenders would be helpful.
• When the offer was made and whether it was a published scheme or individually negotiated.
• Whether it involved full repayment, rather than switching to a fixed or variable mortgage.
• Which department dealt with the request and whether any conditions applied.

I am asking about a performing mortgage on a primary residence and voluntary early repayment—not an arrears settlement or tracker-redress payment.

I appreciate that a tracker is not necessarily loss-making for the lender. I would simply like to establish whether there are any genuine examples of a lender offering an incentive before I make the enquiry.

Thanks.
BW

 

[Brendan Burgess]

You can ask, but you will not be getting a discount.

I appreciate that a tracker is not necessarily loss-making for the lender.

The current ECB rate + the margin is not much different from the market rate.

The ECB rate is 2.65% + 1% margin = 3.65%

Here are AIB's rates at present for <50% LTV which most trackers would be by now. (Their green rates are lower again.)

 

[Brendan Burgess]

With ECB rates expected to increase, some people on trackers are giving up the trackers to fix.

 

[Bikini Widow]

Thanks Brendan. Fairly clear now !