Fortnightly Mortgage Payments - PTSB?

A

Arabica69

Guest
Given recent revelations and the hundreds of millions PTSB are losing, I was planning on approaching them to try and change my tracker mortgage payments from monthly to fortnightly / biweekly. Fortunately we are in a position to make the extra annual payments.

I tried to set up fortnightly payments when we took out the mortgage but they weren't interested. Has anyone tried recently or had any luck?
 
Hi Arabica

Are you proposing to pay the same annual amount, but over 24 payments instead of 12.

Or are you planning to pay twice the amount each year?

You should hold off doing anything until they announce their scheme for encouraging people to increase their payments. You may get a bonus for doing so.
 
I pay my mortgage fortnightly as that's how my salary is paid, but its still the same amount annual as it would have been had it been paid monthly.

what's this about a bonus to increase payments? I'm out of the loop here!
 
Brendan I think they mean that the extra payment will be 2 extra payments as if paying fortnightly there will be 26 payments in the year.
 
Are you proposing to pay the same annual amount, but over 24 payments instead of 12.

Or are you planning to pay twice the amount each year?

Brendan. As niceoneted stated, I was only hoping to pay fortnightly to avail of the extra annual payment.

You should hold off doing anything until they announce their scheme for encouraging people to increase their payments. You may get a bonus for doing so.

This is sound advice. We're already banking a little extra each month so any bonus on top would be well received indeed. We previously had a mortgage with ICS and bi-weekly payments were not an issue. PTSB were less accommodating 36 mos back. I'm hoping that will change.

I pay my mortgage fortnightly as that's how my salary is paid, but its still the same amount annual as it would have been had it been paid monthly.

what's this about a bonus to increase payments? I'm out of the loop here!
Thirsty. Paying your mortgage biweekly - if set-up correctly - allows for extra payments. Theoretically savings would be made in interest / term. I am unable to post a link explaining, but if you google 'fortnightly mortgage payments' you'll find plenty explaining pros & cons.
 
Thanks Arabica69, I understand the overpayment concept.

What I hadn't heard about was the notion of PTSB offering something to holders of tracker mortgages to encourage overpayments - is there any more on this?
 
Thirsty, it's all rumours at this point. Again, if you Google 'tracker mortgage incentive' you'll find an Indo article with a ideas...
 
good article on fortnightly payments today in the Irish Times - [broken link removed]
 
Thanks for the link. Great to see PTSB has changed their tune on this one!

I just spoke to someone on their helpline and (as I currently pay my mortgage by direct debit - which is one of the T&C's of the mortgage) I am required to write to PTSB and formally request that I switch to fortnightly payments. These payments must then be paid by standing order. Easy enough. I must also give a reason I wish to change. Obvious enough... I would have thought!
 
Nothing there about additional bonuses though.

And PTSB are telling fibbies about not being able to do more than one Direct Debit per month. I pay by fortnightly Direct Debit & didn't have to set up a separate Standing order.
 
guys is there a way of working out how much you could knock off your mortage payments, time wise? ive 25yrs left on a mortage thats paying back 1260 a month at the min. if i broke this down to payback in two weekly periods it would work out at 630 every two weeks and a total of 16,380 a year (instead of 15,120). can i work out how many months i might be able to knock off the mortage... or years :0)
thanks
 
good article on fortnightly payments today in the Irish Times - [broken link removed]

I think you mean bad article in the Irish Times. The writer confuses paying twice a month with paying every two weeks, rendering the article misleading and useless.
 
If your provider doesn't play ball then you can just make a small additional payment every two weeks.
 
If your provider doesn't play ball then you can just make a small additional payment every two weeks.

Be warned that when I initially tried adding an additional amount to my PTSB mortgage (albeit a couple of years back), these additional funds just sat in the mortgage account and were not automatically applied to the mortgage as I had assumed.

It was only after I'd set up PTSB's online banking facility 6 mos later that I noticed that the extra funds were just sitting there unallocated and earning nothing. It turned out that I had to download & fill in a form stating my intentions for the over-payments and whether I wished to reduce the term or the repayments.

No doubt this process will get much easier...
 
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