Any examples of PTSB break fee

D

Dauhee

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Hi Folks,

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.

Thanks
 
Hi @Dauhee

How long are you thinking of fixing for?
I can do a few calculations showing different scenarios of what might happen.

I've been meaning to update key post for a while, so might be good to work through a real case study.
 
Hi RedOnion,

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

Any info would be much appreciated
 
Hi Dauhee,

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
 
Thanks RedOnion,

That's excellent, really appreciate that.

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
 
Dauhee said:
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) ...
Click to expand...

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.
 
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