PTSB MVR contract

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StickInTheMud

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Hi,

I have a SVR mortgage with PTSB paying 4.5%. I've been aware of the PTSB Managed Variable Rate for some time now, but I am put off switching to it by a clause in the contract.

The section of the PTSB MVR contract is

8. Once a rate has been switched from the existing rate applicable to the loan to the appropriate Managed Variable Rate in accordance with the Offer, no further switch will be permitted (save a switch to a fixed interest rate where available) and the borrower will be bound to repay the loan at the appropriate Managed Variable Rate as may be varied from time to time at the discretion of the Bank during the remaining term of the mortgage. Accordingly such variations may be made without regard to variations in any other interest rate used by the Bank (including any Managed Variable Rate applicable to different LTV bands, any other rate based on LTV ratios, the permanent tsb standard variable rate or the European Central Bank rate) and irrespective of variations of the LTV ratio of the borrower’s loan during the remaining term of the mortgage. ​

Does this contract clause mean that I would end up stuck with the MVR rate 4.3% for the rest of the mortgage? Meaning if hte SVR is reduced to a fair rate that those on the MVR would be excluded from this?
 
StickInTheMud said:
Meaning if hte SVR is reduced to a fair rate that those on the MVR would be excluded from this?
Click to expand...
Technically, yes.

But, PTSB aren't going to reduce SVR below the highest MVR band. It's create uproar, and make a mockery of their variable rate policy statement and everything they've said at Oireachtas committee about this. Plus, it's benefit too many legacy customers, so it'd cost them too much.

However, it's like the old AIB system, where once go go into an LTV band you can't change to a lower one. So if you're just above a band cutoff you might be better waiting to try bring mortgage down to next band and then get the lower rate.
 
StickInTheMud said:
Hi,

I have a SVR mortgage with PTSB paying 4.5%. I've been aware of the PTSB Managed Variable Rate for some time now, but I am put off switching to it by a clause in the contract.

The section of the PTSB MVR contract is

8. Once a rate has been switched from the existing rate applicable to the loan to the appropriate Managed Variable Rate in accordance with the Offer, no further switch will be permitted (save a switch to a fixed interest rate where available) and the borrower will be bound to repay the loan at the appropriate Managed Variable Rate as may be varied from time to time at the discretion of the Bank during the remaining term of the mortgage. Accordingly such variations may be made without regard to variations in any other interest rate used by the Bank (including any Managed Variable Rate applicable to different LTV bands, any other rate based on LTV ratios, the permanent tsb standard variable rate or the European Central Bank rate) and irrespective of variations of the LTV ratio of the borrower’s loan during the remaining term of the mortgage. ​

Does this contract clause mean that I would end up stuck with the MVR rate 4.3% for the rest of the mortgage? Meaning if hte SVR is reduced to a fair rate that those on the MVR would be excluded from this?
Click to expand...

4.5% is a very high rate to be paying, why not switch bank completely and get a much lower rate and/or cashback? Or if that's not an option why not go on one of PTSB's fixed rated which are way lower than 4.5% ?
 
Coldwarrior said:
4.5% is a very high rate to be paying, why not switch bank completely and get a much lower rate and/or cashback? Or if that's not an option why not go on one of PTSB's fixed rated which are way lower than 4.5% ?
Click to expand...
Switching not an option at the moment - I'm tempted to go to their fixed but their rates are still terrible compared to the others
 
Anyone else been offered fixed rate options with their annual statement? Just been offered a 5 year fixed rate of 3.2%, currently on an mvr of 3.8%, tempted to take it but suspicious of all things ptsb!
 
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