Will Pepper give a discount for clearing a mortgage early?

K

Kenny shaw

Registered User
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Hi guys,
I've previously had a mortgage with tsb.
The mortgage was subsequently taken over by pepper.
The existing balance is €130k including €5k arrears with 22 years left on term.
I'm possibly going to be in a position to clear mortgage quite soon.
My question is would the bank give a discount on the balance if clearing the loan?
Thank you
 
No. This is asked again and again and the answer is always no.

But why not ask them? If the level of arrears has caused them hassle, they might do.




Brendan
 
Why would u think a discount is possible ? The bank is already loosing future interest -
 
I'm not from a financial background,just wondered had anyone had such an experience.
They'd still be making money if they did offer some discount
 
Hi Kenny S
we just sold a property last month where the loan had been transferred to pepper 18 months ago. We had no arrears but had been on reduced payments before the loan was taken over
there was no discount given,we cleared the full balance owing
 
Kenny shaw said:
I'm not from a financial background,just wondered had anyone had such an experience.
They'd still be making money if they did offer some discount
Click to expand...
Nope, if they gave a discount on the capital balance, they would immediately be taking a loss.

Eg, if I owed you €20 and agreed to pay it off €2 a month, but offered you €18 after a week, you take a loss.

Banks can borrow money at miniscule rates, so once they are charging over 0.5% it is a profitable loan after costs.

The one and only situation any bank will ever contemplate a discount is if you have low income, house in negative equity and ongoing arrears issues. And even then you probably need to go into a personal insolvency agreement.


Now, possibly you looking at the total repayments until the end of the mortgage and wondering if they will reduce that? - You only owe them the capital balance as of the current moment. You won't pay any of the future interest when you redeem.
 
Claude said:
Hi Kenny S
we just sold a property last month where the loan had been transferred to pepper 18 months ago. We had no arrears but had been on reduced payments before the loan was taken over
there was no discount given,we cleared the full balance owing
Click to expand...
Thank you
 
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