Fixed rate ending - Options Advice

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SpiderBaby

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My AIB Fixed rate of 3.3% (<50% LTV) is coming to an end in late November. We have ~€200000 mortgage balance remaining with just under 20yrs left. We were a C1 rating on our BER 10 years ago so have discounted Green mortgages for the moment as there are no plans for any major energy upgrades and most of the cheaper ones have already been completed (insulation, lightbulbs etc.)

I've narrowed the options down to the following:

ProviderTermRateCashbackNet cost per year
AIB43.55%N/A€14278
AIB53.65%N/A€14397
PTSB43%Not on this rate€13866
PTSB73.35%2%€13686
AVANT43.4%2%€13536
AVANT53.45%2%€13723
AVANT20yr3.4%1%€14140

Few notes:
- AIB existing waived C/A fees of €6 p/m will be incurred (As they waive the fees if you have a mortgage with them and I'll still be using them for other banking needs)
- PTSB charge €8 p/m for a C/A but they'll give an additional 2% p/m (of the monthly repayment) as cashback - ~€22)
- I've used Claude for the Net cost per year calcs and they take into consideration any fees, cashback etc. and has used a switching fee avg of €1350.
- We're not planning on moving within 5 yrs but potentially would consider moving within 10 years.

Q: All things being equal, should I simply go for the cheapest NCPY or should I avoid PTSB for example? (have seen the recent post about their takeover).
Q: I'm assuming the 20yr (and possibly 7yr) rates are not worth the risk if we are potentially going to move in the 5-10yr timeframe, or am I missing something?

Thanks!
 
With the current climate, I would fix for the longest time with the best rate, plans can change your move might get delayed.
Bias here as I am with PTSB on that rate you have mentioned.
 
I would avoid ptsb as they have a history of abusing their customers even worse than other banks.

Avant seems the best value and probably will be in the longer term.

What are the penalties for early repayment of a 20 year fixed rate?

You might not think you are going to repay a mortgage early, but in time, you probably will.

If you trade up, can you bring the mortgage with you?
 
Brendan Burgess said:
What are the penalties for early repayment of a 20 year fixed rate?
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Just had a look - "the maximum early redemption fee will not be any more than 2% of the remaining balance in the first 10 years, reducing to 1.5% of your remaining balance after that." So only about €3000 in my case should I move within years 5-6, decreasing each year thereafter.

Brendan Burgess said:
If you trade up, can you bring the mortgage with you?
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They say this "Your early redemption fee may be waived or refunded if you take a new mortgage with us for the same amount and term within 12 months of redeeming your old mortgage.". I'd likely be looking for a larger mortgage so don't think the waiver would apply but will ask them if that's 100% the case.
 
SpiderBaby said:
I'd likely be looking for a larger mortgage so don't think the waiver would apply but will ask them if that's 100% the case.
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I would imagine that if you have €200k left with 17 years to go and you want €300k

They will give you two mortgages - one replacement and a new mortgage with the then current terms
 
You can't "port" an Avant mortgage to a new house and keep your old rate. The full mortgage would be with the then current terms/rates, but you wouldn't pay a break-fee if you took out a new mortgage of at least same size and term.
 
I am in a very similar situation.

I did the calcs myself in excel so open to corrections. The yellow is the winer(s) for each category. Coming off a 2.4% with BOI. They don't seem to have anything competitive even though I have a .2% discount from KBC.

To be honest the 7 years with PTSB temps me as I already bank with them and am content. Alternatively one of the 5 years, probably PTSB.

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@Brendan Burgess can you elaborate of PTSB abusing their customers? Will the recent sale have any impact (in general).

I was actually waned away from BOI by my broker 5 years ago as she said they are not competitive. I hadn't even drawn down and KBC were selling to BOI.
 
Brendan Burgess said:
  1. ptsb, in particular, has a long history of exploiting vulnerable customers and although you are in a good position now, you could be vulnerable at some stage over the next 20 years.
    1. They offered attractive looking "discounted trackers" to customers at a rate of 0.8% above the ECB rate for the first year. When the first year was up, they were put on ECB +3.25%.
    2. Customers who were entitled to trackers when fixed rates ended, were offered variable rates pitched just below the tracker rate. Most customers opted for these, little knowing that once they were off their trackers, ptsb hiked the variable rate.
    3. During the financial crisis, when AIB and BoI had a standard variable rate of 3% and 3.5% , ptsb were charging over 6% and most customers could not switch as the market had frozen.
    4. For a long time, ptsb did not even allow existing customers to fix at any rate, forcing them to pay high variable rates. And when they did introduced fixed rates for existing customers, they were substantially higher than the rates on offer to new customers.
If you take out a mortgage with ptsb you only have yourself to blame if you find yourself in a few years time paying a very high rate and unable to do anything about it.
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Thanks @Brendan Burgess some food or thought.

Two things spring to mind, is this type of behaviour PTSB DNA? Should my circumstances change in say 7 years, PTSB try and screw me, what kind of position would I be in regarding clearing the mortgage.
 
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