Getting out of Ptsb overprice variable

S

submarine

Guest
Hi guys just wondering what to do,
I am currently stuck with the Ptsb on their overpriced variable rate mortgage,
the current value of my mortgage is 175k, the recent value of my home is 160k, i know that for a new bank to entertain taking me on i would have to get this mortgage below 92% of the value of the property but are banks taking on new customers.
I would have a permanent job on 40K excluding OT
Would have close to 35k in savings.

Am I going to risk pumping money it into the mortgage and find that no other banks will take me on or should i stay with the Ptsb and try invest some of the money what to do ???
 
As you are saying it is overpriced, what rate are you paying on the mortgage? May I ask when you took the mortgage out, and what the duration is?
 
At the moment, you'll only get a bank to accept a switch from another lender at 80%. 92% is for house purchases only.

That said, you can apply to another lender for your new mortgage and be approved without having actually paid your savings into your PTSB loan. So you don't have to commit your savings until you're absolutely sure that the new lender will take you.

I'd be inclined to get a valuation done as part of the new mortgage process. If the mortgage valuation comes in at less than 160,000, this will have an effect on the 80% maximum mortgage and may scupper the whole deal. On the other hand, if it comes in above 160,000 it could mean that you can get approved for more and thus use up less of your savings. Cost of the valuation is €130 or so, but it will buy you certainty on this.

Incidentally, have you read the Askaboutmoney [broken link removed]?

Liam D. Ferguson
 
Hi liam,
Aologies , it was first time using this forum, should have followed the other thread .
Cheers , the house was evaluated as part of a proposed move to another lender approximately 6-8 months ago and house prices in the area haven fallen too much more .
I don't see myself sacrificing that high a proportion of my savings although 20 k of it was recently inhereted so would be willing to pay this off the mortgage, although unsure as to take it off the term or to reduce the monthly payments and keep the term the same ..
Can mamage monthly repayments as it stands .
 
submarine said:
I don't see myself sacrificing that high a proportion of my savings although 20 k of it was recently inhereted so would be willing to pay this off the mortgage, although unsure as to take it off the term or to reduce the monthly payments and keep the term the same ..
Can mamage monthly repayments as it stands .
Click to expand...

If you can manage the monthly repayments as they are then keep them at their current rate. That way, any lump sum overpayment will accelerate how quickly you're paying down what you owe and will save you interest. Go further - if there's another interest rate decrease in the next couple of months (as is speculated), instruct PTSB to keep your monthly repayment at the current level, which will also leave you paying off the capital more quickly.
 
LDFerguson said:
If you can manage the monthly repayments as they are then keep them at their current rate. That way, any lump sum overpayment will accelerate how quickly you're paying down what you owe and will save you interest. Go further - if there's another interest rate decrease in the next couple of months (as is speculated), instruct PTSB to keep your monthly repayment at the current level, which will also leave you paying off the capital more quickly.
Click to expand...

I would advise people to stress test themselves if they do this. Keeping your repayments the same when interest rates fall, will help pay off your mortgage faster with less interest. However, one should also be aware that interest rates can rise again, and unless you have an agreement with your lender to revert to the old term, your mortgage repayments will be higher than they otherwise would have been.

Personally, to maintain flexibility, I would pocket the savings in a savings account and then drop a lump sum on the mortgage every 6 months or so. That way, you will save on interest, reduce your term, but keep the flexibility to make the lower payment without needing to get a new agreement from your bank.
 
Cheers guys,
well one thing is for sure I don`t think the Ptsb could squeeze much more out of variable rate customers so fingers crossed the only way they can put interest rates is down.
 
If you knock a lump sum off the mortgage and can afford higher repayments do that for a while until you can switch bank. Interest rates coming down does not mean the PTSB will reduce it's rates. Don't forget to factor in the cost of moving bank etc.
 
Hi Submarine

mortgage |175
savings|35
possible net mortgage|140
House value |160
80%|128
Required to get to 80% LTV|12k

Can you raise €12k anywhere to get down to 80% Loan to Value?

If so, you should demand to be put on their new rate of 3.7%

They will refuse, but you should kick up a song and dance about it.

Brendan
 
Brendan Burgess said:
Hi Submarine

mortgage |175
savings|35
possible net mortgage|140
House value |160
80%|128
Required to get to 80% LTV|12k

Can you raise €12k anywhere to get down to 80% Loan to Value?

If so, you should demand to be put on their new rate of 3.7%

They will refuse, but you should kick up a song and dance about it.

Brendan
Click to expand...

Can this be done? I thought this was for new business only? I am putting money to one side at the minute to reduce mortgage/switch mortgage from PTSB, if this could be done I would be interested.
 
I think you'd be wasting your time. PTSB have no legal obligation to offer you the new rate. You'd be better off trying another bank.
 
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