I always thought that there was a possibility of a discount, but there is no chance now. The banks are not losing money on trackers anymore, so why would they give a discount?
Imagine the following scenario.
You pay off your mortgage and you are very happy to be debt free.
You lose your job - great, you won't have your mortgage payments to worry about.
But you have "only" €60k cash. When, that is gone, it's gone.
You may find that you have to borrow to keep going. If you do, it will be at well in excess of 1%.
It's nice to be debt-free when the debt is costing you 4.5% interest. But it's great to have debts when they are costing you only 1%.
Keep the cash. Invest it in shares.
If you lose your job, you will have money available to you.
If you lose your job and you are likely to be out of work for over a year, then check the social welfare implications of having €120k in cash. It may affect means tested benefits, in which case, you should pay down your mortgage. But don't worry about any of that now.