Key Post I have a Permanent TSB tracker – should I consider fixing?

Appreciate any advice on our position:

1) Existing tracker margin 1.68% Tracker
2) Amount outstanding on your mortgage €72, 000
3) Remaining term 10 years (slightly less)
4) Lender PTSB
5) Value of your home €350,000
6) Might you trade up or overpay your mortgage? Not likely in the next 3 to 5 years
7) Do you face any barriers to switching. No
8) What rates are you considering fixing at? Unsure as to whether it is worthwhile switching or not. We have some scope to overpay by a couple of hundred a month, not sure whether should fix at say 7 years with another lender or just hang tough and try to overpay, any advice very welcome. My husband is in construction so hoping there is no recession on the cards which would influence whether we can overpay. Im in a public sector middle management job with decent salary.
 
@safetymom

Probably not worth switching a €72k mortgage with 10 years left to go so you are "stuck" with your tracker or stuck with ptsb's predatory existing customer rates.

You can fix for 5 years or 7 years at 3% with ptsb. After the fixed rate period, you will lose your tracker, but the balance will be quite low by then.

With ECB rates at 2%, you will shortly be paying 3.68%. The ECB rate could go up or down.

On balance, I think I would fix - and probably for 7 years.

safetymom said:
We have some scope to overpay by a couple of hundred a month,
Click to expand...

safetymom said:
My husband is in construction so hoping there is no recession on the cards which would influence whether we can overpay.
Click to expand...
ptsb's treatment of overpayments is different from other lenders. They put the overpayment into a credit account and charge you interest on the net figure. So while you can't get back any overpayments, you can stop paying your mortgage until you have used up your credits.

So overpay it, and if you get into financial difficulty, stop paying your mortgage.

Brendan
 
Brendan Burgess said:
@safetymom

Probably not worth switching a €72k mortgage with 10 years left to go so you are "stuck" with your tracker or stuck with ptsb's predatory existing customer rates.

You can fix for 5 years or 7 years at 3% with ptsb. After the fixed rate period, you will lose your tracker, but the balance will be quite low by then.

With ECB rates at 2%, you will shortly be paying 3.68%. The ECB rate could go up or down.

On balance, I think I would fix - and probably for 7 years.




ptsb's treatment of overpayments is different from other lenders. They put the overpayment into a credit account and charge you interest on the net figure. So while you can't get back any overpayments, you can stop paying your mortgage until you have used up your credits.

So overpay it, and if you get into financial difficulty, stop paying your mortgage.

Brendan
Click to expand...
Thanks Brendan
Just to clarify, even if we fix with ptsb we will still be able to overpay and these will be treated the same way ie. put into a credit account? I was aware we could do that with our tracker but it would be great to also have that ability if we go to a fixed rate.
 
Brendan Burgess said:
@safetymom

Yes.

Key Post - How overpaying a ptsb mortgage works

I was vaguely aware of this but it was brought to my attention this morning by someone who is choosing ptsb because of this facility. https://www.permanenttsb.ie/globalassets/pdf-documents/mortgages/mortgage-arrears/bmk3625..-flexible-mortgage-options-aug-19..-1.05mb.pdf In simple terms, if...
www.askaboutmoney.com

Brendan
Click to expand...
Thanks again Brendan
Just got a quote of 3% to fix for 7 years so going to go with that... after the years of advice of hold on to your tracker it just seemed strange to ask to switch :)
Ill try to overpay to make sure balance as low as possible by time fixed rate ends.
 
Hi Brendan

Really appreciate any advice:

Existing tracker margin 2.75% after todays increase

2) Amount outstanding on your mortgage
830k

3) Remaining term 9yrs

4) Lender PTSB

5) Value of your home 950k

6) Might you trade up or overpay your mortgage? No

7) Do you face any barriers to switching? E.g. an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage.No but was interest only for the first 20 years. Now paying small capital €550 per month
Single mortgage for 2 houses (one is a rental)

8) What rates are you considering fixing at? No idea - looking for advice

9) Does your house have a high BER rating which might qualify it for a lower rate? Don’t think so as B2
 
@Hucktheberry

You could fix for 7 years at 3%.
You would lose your tracker after that, but so what? With only two years to go, it would not be that important.

A bigger issue for you is whether you should retain the investment property or not. It seems odd that you are paying only €500 capital a month on such a big mortgage.

But this thread is exclusively for "should I fix my tracker?" questions. But you should start a separate Moneymakeover thread.

If you do decide to sell the investment property, then fixing is probably not a good idea as you might face an early repayment fee.

Brendan
 
Last edited by a moderator:
Hi all , i have been reading this thread and trying to get my own head around my mortgage and what to do , I wouldn't be clued in enough so I'm seeking some guidance on what to do , we have a PTSB Tracker and a long way to go , from what i have read here it sound like i need to talk to Advant or AIB ?

1) Existing tracker margin = ECB + 2.25 ( 3.5% )
2) Amount outstanding on your mortgage = 289,000
3) Remaining term = 307 months
4) Lender = PTSB
5) Value of your home = €400,000
6) Might you trade up or overpay your mortgage? = no plans at all
7) Do you face any barriers to switching. = not sure what this means
8) What rates are you considering fixing at? = unsure and only started looking into this today .

thanks in advance for any reply .

Ian
 
Brendan Burgess said:
@Hucktheberry

You could fix for 7 years at 3%.
You would lose your tracker after that, but so what? With only two years to go, it would not be that important.

A bigger issue for you is whether you should retain the investment property or not. It seems odd that you are paying only €500 capital a month on such a big mortgage.

But this thread is exclusively for "should I fix my tracker?" questions. But you should start a separate Moneymakeover thread.

If you do decide to sell the investment property, then fixing is probably not a good idea as you might face an early repayment fee.

Brendan
Click to expand...
Thanks Brendan
 
oggostaff said:
1) Existing tracker margin = ECB + 2.25 ( 3.5% )
2) Amount outstanding on your mortgage = 289,000
Click to expand...

@oggostaff


The ECB rate is now 2%, you will shortly be paying 4.25%

You can fix with ptsb for 5 years or 7 years at 3% and probably should do so.

You will lose your tracker, but at this margin it's not worth very much.

There is not much point in switching to Avant or AIB as their rates are similar.

So fix today before the rates go up.

Brendan
 
Brendan Burgess said:
@oggostaff


The ECB rate is now 2%, you will shortly be paying 4.25%

You can fix with ptsb for 5 years or 7 years at 3% and probably should do so.

You will lose your tracker, but at this margin it's not worth very much.

There is not much point in switching to Avant or AIB as their rates are similar.

So fix today before the rates go up.

Brendan
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Brendan
thanks for replying , sounds like a plan !

thanks again
Ian
 
I dont want to lose the tracker but ...

1) Existing tracker margin ECB +0.75%
2) Amount outstanding on your mortgage €654,000
3) Remaining term 18 years
4) Lender PTSB
5) Value of your home €1,200,000
6) Might you trade up or overpay your mortgage? no
7) Do you face any barriers to switching. Don’t think so,
8) What rates are you considering fixing at? 7 yr fixed @3%
9) BER B2
 
@Minimus

This is absolutely borderline.

With an ECB rate of 2% , you will shortly be paying 2.75%. It could well rise to over 3% in the coming months, but no one knows what happens after that.

If you fix for 7 years, you will lose your tracker and will have 11 years remaining at ptsb's predatory rates for existing customers

A very close call.
If you can handle any increases comfortably, I would stay with the tracker.
If an increase in ECB rate to 4% would cause you financial difficulty, then fix.

€654k @4.75% would be a repayment of €4,500 a month.
€654k @3% would be a repayment of €3,900 a month.

Would the extra €600 break the bank?

Brendan
 
Hi Brendan - I'm torn between keeping tracker or fixing, and if fixing, for how long. Any help much appreciated

1) Existing tracker margin ECB + 1.1
2) Amount outstanding on your mortgage €143,175
3) Remaining term 19 years
4) Lender PTSB
5) Value of your home € 240,000
6) Might you trade up or overpay your mortgage? NO
7) Do you face any barriers to switching. NO
8) What rates are you considering fixing at? 3, 5 OR 7 YEAR - ALL AT 3.0%
 
@Feedback

If you fix, you will lose your tracker so after that, you will be subject to ptsb's higher rates for existing customers for the term remaining after the fixed rate.

A tracker margin of 1.1% is not bad.

If you can handle a rise in ECB rates with comfort, then I would hold onto the tracker.
If a rise to 4% would cause you great difficulty, then you should go for the security of fixing and probably for 7 years.

Brendan
 
Brendan Burgess said:
@Feedback

If you fix, you will lose your tracker so after that, you will be subject to ptsb's higher rates for existing customers for the term remaining after the fixed rate.

A tracker margin of 1.1% is not bad.

If you can handle a rise in ECB rates with comfort, then I would hold onto the tracker.
If a rise to 4% would cause you great difficulty, then you should go for the security of fixing and probably for 7 years.

Brendan
Click to expand...
Thanks very much Brendan.
 
Brendan Burgess said:
@Minimus

This is absolutely borderline.

With an ECB rate of 2% , you will shortly be paying 2.75%. It could well rise to over 3% in the coming months, but no one knows what happens after that.

If you fix for 7 years, you will lose your tracker and will have 11 years remaining at ptsb's predatory rates for existing customers

A very close call.
If you can handle any increases comfortably, I would stay with the tracker.
If an increase in ECB rate to 4% would cause you financial difficulty, then fix.

€654k @4.75% would be a repayment of €4,500 a month.
€654k @3% would be a repayment of €3,900 a month.

Would the extra €600 break the bank?

Brendan
Click to expand...
Thanks Brendan. Sticking with the tracker.
 
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