Fixed term PTSB mortgage

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masterboy123

Registered User
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Hi All,

I am looking for some informal advice.
I am on 5 Year Fixed 2.95% new home >60% & <80% LTV mortgage from PTSB.
The remaining term is 248 months.

Is it worth contacting the bank to check the break fee? And if it's a low, move to another mortgage?

I understand I can't pay lump sum as it's fixed? We saved extra money in the last year (no holiday, etc.)

Thanks
 
PebbleBeach2020 said:
You could move to a cheaper rate or to EBS or BOI for cashback if the break fee is zero.
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Or Avant or AIB or ICS- I would have taught EBS and BOI where not the best direction in regards best buy mortgages due to they way they treat existing customers as regards new business rates.
 
PebbleBeach2020 said:
Switch to them and switch immediately after once you receive the cashbacks.
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true true, do you have a breakdown of the switching process from going bank 1 to bank 2 to bank 3 including the solicitor how they fall into the process each time. And do you have a list of what banks require you to be with your lender a certain amount of time before they will allow you to switch to them?
 
@masterboy123 You are always entitled to pay off a lump sum, even when you are on a fixed rate, but to do so you have to pay a break fee.

However, right now the break fee is zero for you (and that is also the case if you switch to another lender).

The best option option for you looks to be AIB's 2.15% green rate, fixed for 5 years. It comes with €2,000 cashback. You will be better off by about €6,500 in five years' time (versus staying with PTSB), and that's after accounting for switching fees.

If your LTV is below 70%, you could also consider Avant's 2.05% rate but it doesn't offer any cashback, so AIB looks like a better bet. That's unless you think your LTV will be below 60% in the near future. If it will, you may be able to switch to a lower rate with Avant at that point. But remember that interest rates might have risen by then.

Note that somebody on this forum said that you need to be with your current lender for at least 2 years before Avant will let you switch to them. Maybe approach an Avant broker and see if you can confirm that that is true.

What do you think your LTV is right now?
 
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Paul F said:
@masterboy123 You are always entitled to pay off a lump sum, even when you are on a fixed rate, but to do so you have to pay a break fee.

However, right now the break fee is zero for you (and that is also the case if you switch to another lender).

The best option option for you looks to be AIB's 2.15% green rate, fixed for 5 years. It comes with €2,000 cashback. You will be better off by about €6,500 in five years' time (versus staying with PTSB), and that's after accounting for switching fees.

If your LTV is below 70%, you could also consider Avant's 2.05% rate but it doesn't offer any cashback, so AIB looks like a better bet. That's unless you think your LTV will be below 60% in the near future. If it will, you may be able to switch to a lower rate with Avant at that point. But remember that interest rates might have risen by that point.

Note that somebody on this forum said that you need to be with your current lender for at least 2 years before Avant will let you switch to them. Maybe approach an Avant broker and see if you can confirm that that is true.

What do you think your LTV is right now?
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Thanks for the detailed explanation and suggestions.

Could I ask how you did you calculate that the break fee is zero at the moment for me?

I am AIB customer and the deal you mentioned looks good!

LTV should be 65% or less!
 
@masterboy123 The break fee is zero because the 3- and 4-year interbank interest rates are higher now than the 5-year interbank interest rate was back when you fixed. (If the 3- and 4-year interbank interest rates were lower, you'd be liable for a break fee.)

Even if you paid off a lump sum with PTSB and brought your LTV below 60%, AIB would still be a better choice for you than Avant's 1.95% rate over the next 5 years (because of the €2,000 cashback from AIB).
 
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Paul F said:
@masterboy123 The break fee is zero because the 3- and 4-year interbank interest rates are higher now than the 5-year interbank interest rate was back when you fixed. (If the 3- and 4-year interbank interest rates were lower, you'd be liable for a break fee.)

Even if you paid off a lump sum with PTSB and brought your LTV below 60%, AIB would still be a better choice for you than Avant's 1.95% rate over the next 5 years (because of the €2,000 cashback from AIB).
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Thanks for this!

I couldn't get in touch with PTSB last week on the phone and I will ring them again this week to post me the details about break fee and how to proceed.

Assuming I go ahead with AIB, do I have to have a mortgage approval from AIB and solicitor lined up?

Also, I recall an engineer was called out to carry out a valuation report 18 months ago. Do I have to arrange this again?

Lastly, could the same mortgage protection plan could continue?

My monthly installment is 883 and 21 is the insurance. Total 904 per month.
 
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masterboy123 said:
Assuming I go ahead with AIB, do I have to have a mortgage approval from AIB and solicitor lined up?
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Get in touch with AIB Mortgages using one of the options at the bottom of the page here – if you call them up or organise a call back, they will ask for all your financial details over the phone, so have them ready. Or you can book an appointment to do it in a branch.

Either way, shortly after that you'll be given access to the "Manage My Mortgage" portal where you can upload any docs that they need. And the checklist shown there makes it clear when you need to organise a solicitor and valuation, and how to do it.

You can continue using your current mortgage protection plan.
 
Paul F said:
Get in touch with AIB Mortgages using one of the options at the bottom of the page here – if you call them up or organise a call back, they will ask for all your financial details over the phone, so have them ready. Or you can book an appointment to do it in a branch.

Either way, shortly after that you'll be given access to the "Manage My Mortgage" portal where you can upload any docs that they need. And the checklist shown there makes it clear when you need to organise a solicitor and valuation, and how to do it.

You can continue using your current mortgage protection plan.
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So I have successfully got AIP from AIB. The green rate 2.15%.
I am now collecting different documents.

I will contact PTSB tomorrow as if there is a substantial break fee that would be a deal breaker.

Also, does anyone know if you have to stick with PTSB for at least 2 years before you could move?
 
masterboy123 said:
So I have successfully got AIP from AIB. The green rate 2.15%.
I am now collecting different documents.

I will contact PTSB tomorrow as if there is a substantial break fee that would be a deal breaker.

Also, does anyone know if you have to stick with PTSB for at least 2 years before you could move?
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Your break fee is very likely to be zero for the next few weeks at least (and probably for the next few months).

PTSB can't stop you leaving but in theory AIB could refuse to take you. But that is unlikely because you have been with PTSB more than a year.
 
Paul F said:
Your break fee is very likely to be zero for the next few weeks at least (and probably for the next few months).

PTSB can't stop you leaving but in theory AIB could refuse to take you. But that is unlikely because you have been with PTSB more than a year.
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I contacted PTSB and was told that they can't give me a break fee over the phone and advised to visit my local PTSB branch. I am tight on time right now due to work commitments and don't think I could take time off work in the next 2 weeks.

Anyone else got experience getting a Break Fee from PTSB?

Thanks
 
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