In the absence of contacting PTSB directly, can anyone tell me what the early redemption penalty would be on a PTSB fixed rate interest only mortgage, on a principal of €214.2K, fixed over a period of 24 months at 4.54% (nominal) on a 25yr term. The monthly repayment is €810. The exit would be at 6 months into the 24. I am particularly interested to know what their second point below boils down to.
'Permanent TSB sets out its rule as follows:
Whenever repayment of a loan in full or in part is made before the expiration of the Fixed Rate Period the applicant shall, in addition to all other sums payable, as a condition of and at the time of such repayment, pay whichever is the lesser of the following two sums:
Whenever repayment of a loan in full or in part is made before the expiration of the Fixed Rate Period the applicant shall, in addition to all other sums payable, as a condition of and at the time of such repayment, pay whichever is the lesser of the following two sums:
- a sum equal to one half of the amount of interest (calculated on a reducing balance basis) which would have been payable on the principal sum desired to be repaid, for the remainder of the Fixed Rate Period, or
- a sum equal to Irish Permanent's estimate of the loss (if any) occasioned by such early repayment, calculated as the difference between on the one hand the total amount of interest (calculated on a reducing balance basis) which the applicant would have paid on the principal sum being repaid to the end of the Fixed Rate Period at the fixed rate of interest, and on the other hand the sum (if lower) which Irish Permanent could earn on a similar principal sum to that being repaid if Irish Permanent loaned such sum to a Borrower at its then current New Business Fixed Rate with a maturity date next nearest to the end of the Fixed Rate Period of the loan, or part thereof, being repaid.