tracker morgtage over payment

noel

started Feb 20, 2011 at 09:49

comment by Simon Moynihan Mar 25, 2011 at 12:58

Dear Noel,

Banks are trying to get tracker mortgages off their books because in many cases they are losing money on them. According to one of Ireland's leading financial journalists, some banks are actively encouraging customers to overpay on their trackers to get them off their books sooner. Apparently, actual cash incentives are being offered to do so.

Here's the thing. If you have the money available to overpay your tracker, then you have the money to put on deposit. It is currently possible to make more money on deposit than you'd save in interest by overpaying your tracker mortgage. This is where the incentives come in. If Halifax is prepared to offer you a deal that makes it more financially beneficial to overpay than to deposit, then go for it, but you'll need to talk to them. I'm sure they'd be happy to have the conversation.

I hope this helps

Simon