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Thread: Some good news for homeowners: Transfer of tracker mortages to be allowed.

  1. #1
    Politics.ie Member Sync's Avatar
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    Default Some good news for homeowners: Transfer of tracker mortages to be allowed.

    Let's all be clear here: Tracker mortgage holders have it pretty good. Over a 300k loan, they're making off with 450 savings per month compared to their non tracker equivalent. Additionally, drops in ECB rates see the losses taken by the banks transferred on to non-tracker mortgages, meaning they're effectively paying more so trackers can pay less.

    One of the few downsides of the tracker though is the non-transferable nature of it. If I want to move house, then I lose the tracker and move onto a standard product.

    Now TSB are to allow people transfer their tracker amount to new mortgages when they want to move, with other banks allowing it for 5 years.


    Homeowners can move and keep their tracker mortgages - Independent.ie

    For homeowners the advantage is obvious. If you bought a tracker on a 2 bed apt 6 years ago and have since had kids etc, they've felt trapped in that mortgage because the cost of giving it up is so high.

    But here's why it makes sense for the banks to do it as well: You can't get out of the tracker rate right now (unless some pretty radical legislation is passed) so you're going to have to take the loss anyway.

    But by following this model, they help increase demand for houses (particularly those all important 3 bed semis in Dublin) as well as getting the family to use your bank to get the extra (non-trackered) cash needed to buy. So you're stoking the market and giving out additional loans to people who have already been successfully repaying you up to now.

    This isn't going to represent some sea change in the banks fortunes, it's not going to really address the problem of defaulters right now, but it will help the families who are feeling trapped by their trackers.
    I'm living in America, and in America, you're on your own. America's not a country. It's just a business. Now f***ing pay me.

  2. #2

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    Can you add a 'some' to the thread title, before 'homeowners', please?
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  3. #3
    Politics.ie Member paulp's Avatar
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    Yes a good step.
    I don't understand why the banks with trackers aren't offering some incentive for tracker holders to overpay.
    There is no Keyser Soze

  4. #4

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    And by raising the price of houses, it will make it a more attractive option to repossess the variable rate mortgage holders, they are currently riding like a €1,000 hooker, rather than give them some relief.
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  5. #5

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    How much will this cost the taxpayer, and will it reduce the banks' chances of returning to profitability? (this is the justification which is always used when it comes to riding variable rate mortgage holders)
    I have no money, but I love my life.

  6. #6
    Politics.ie Member paulp's Avatar
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    Quote Originally Posted by ShoutingIsLeadership View Post
    How much will this cost the taxpayer, and will it reduce the banks' chances of returning to profitability? (this is the justification which is always used when it comes to riding variable rate mortgage holders)
    How would it cost the taxpayer?
    I assume the banks are seeing this barrier to movement in the housing sector as a problem for them and hope this will alleviate it somewhat.
    I agree variable holders are in a sh!t spot, what would you suggest be done for them?
    There is no Keyser Soze

  7. #7

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    Quote Originally Posted by paulp View Post
    How would it cost the taxpayer?
    I assume the banks are seeing this barrier to movement in the housing sector as a problem for them and hope this will alleviate it somewhat.
    I agree variable holders are in a sh!t spot, what would you suggest be done for them?
    If someone sells their house, they pay off their mortgage and the contract ends. I am just asking if there is any impact on the taxpayer, in allowing those mortgage holders to move and keep the terms of a contract which no longer exists.

    Variable rate holders? The CBI should put a limit on the rate differential banks can apply over the ECB rate, and the State should offer give more mortgage interest relief to variable rate holders. Simple measures.
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  8. #8
    Politics.ie Member artfoley56's Avatar
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    Quote Originally Posted by ShoutingIsLeadership View Post
    they are currently riding like a €1,000 hooker, rather than give them some relief.
    i dunno, i presume being rid like a 1000 euro hooker would provide some relief
    "I like a bit of a cavort, I don't send 'em solicitor's letters. I apply a bit of pressure"

  9. #9
    Dylan2010
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    its a ok move for the banks , the LTV would probably drop as well if there is a bigger property attached to the same mortgage assuming the buyer is using savings to pay the balance.

  10. #10

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    Quote Originally Posted by artfoley56 View Post
    i dunno, i presume being rid like a 1000 euro hooker would provide some relief
    For the hooker?
    I have no money, but I love my life.

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