Just wondering if anyone has any examples of recent PTSB break fees (for recently taken out mortgages)? I know there is a specific calculation but just looking to get an idea before I switch to them.
There are a couple of moving parts (there cost of funds) which ultimately only the bank will know. Best bet is to contact your bank and get a written quote.
Am going for 3 year 3.05% for approx 180k. Am wondering on the off-chance better rates come out next year (before they possibly start upwards) what the break cost would be
I can't remember your circumstances, but can you not switch away from PTSB?
PTSB calculate break costs from mid swap rates. Current rate curve looks like this:
1 Yr -0.25
2 Yr -0.17
3 Yr -0.03
4 Yr 0.12
5 Yr 0.26
So if you fix now or 3 years, the relevant cost of funds rate is -0.03%
Then if you break in 12 months, the relevant rate will be the 2 year rate at that time, and they'll charge based on the difference between the 3 year rate now, and the 2 year rate then. in the following scenarios:
1 Unchanged at -0.17%. Eur 504.00
2. 2 Yr dropped to -0.4%. Eur 1,3332.00
3. 2 Yr anywhere above -0.03%. Zero break fee
My spouse is discharged from bankruptcy in the last year, moving from EBS 3.16% variable, got out of negative equity 3 years ago on first home, negotiated my current rate with new mortgage/house move 3 years ago, cashback wasn't on offer then
PTSB were the only bank that would accept. Bit of a gamble on the long term as will probably be stuck with PTSB, but will be approx 140Eur a month better off (inital cashback + monthly 2% cashback). I would have moved even if broke even as I feel hard done by with new customers able to avail of a cashback
My spouse is discharged from bankruptcy in the last year, moving from EBS 3.16% variable, got out of negative equity 3 years ago on first home, negotiated my current rate with new mortgage/house move 3 years ago, cashback wasn't on offer then
PTSB were the only bank that would accept. Bit of a gamble on the long term as will probably be stuck with PTSB, but will be approx 140Eur a month better off (inital cashback + monthly 2% cashback) ...
Given this you may be better off going for the equivalent 5 year fixed rate @ 3.15%. PTSB currently don't give existing customers access to the low new customer rates. So break fees won't be relevant unless you are switching bank. At the end of your 3-year fix you would roll to a Managed Variable or existing customer fix rate - currently @ 3.7%. The extra 2 years would give you more time to build up a credit history to switch bank or for PTSB to improve their rates for existing customers.