Overpaying PTSB tracker mortgage

[higgins]

I have my mortgage with PTSB and recently I wanted to try out overpaying to see how easy this would be.

I called PTSB who told me it was possible but I'd have to transfer money over to the Mortgage account and then ask them directly when the money is there to reduce the capital or the term of the loan. Otherwise it would be sitting there until I underpaid one month or took a payment holiday.

I transferred €500 to the mortgage account and rang up PTSB today when I noticed it was in the arrears/prepayment section on their online banking webpage.

I was told on the phone that the value has to be a minimum of €1,500 before they will take this money from the capital ?? and that I can only use it now to offset against next months payment or a payment in the future.

Is there normally a limit to the amount you need to reduce the term of the loan ?

 

[ClubMan]

I called PTSB who told me it was possible but I'd have to transfer money over to the Mortgage account and then ask them directly when the money is there to reduce the capital or the term of the loan. Otherwise it would be sitting there until I underpaid one month or took a payment holiday.

It's not unusual for lenders to do this in the absence of explicit instructions that the money was to be used to pay off the capital.

Is there normally a limit to the amount you need to reduce the term of the loan ?

Some lenders specify a minimum amount that they will accept to be paid off the capital as a lump sum.

 

[Bosshog]

It really depends on who you talk to in PTSB, you will get a different set of rules from different customer service reps.
I have been given conflicting information on numerous occasions.

you were told it ha d to reach €1500. Well I was first told it had to reach €1000 before you could offset it, then i was told €1270 (??? random figure), then i was told in order to offset against capital i needed to cancel my ongoing overpayment before they would do that.

However i have since learned that the overpaid credit sitting in your mortgage account is taken into account when your interest is being calculated. So it is of benefit there. I overpay by apx €500 per month which i wil leave in credit.
Your mortgage would need to be rescheduled every time you actually offset a sum against the capital, so would involve lots of admin / paperwork etc.

I just wish that PTSB had a clear and concise set of rules regarding their flexible options / overpayments.