How do ptsb mortgage overpayments work?

[scholes100]

Hi , I have a mortgage with PTSB and over the last 4 years i have been overpaying. These payments are held in the mortgage account as Prepayment but haven't come off the total mortgage amount. We were told that the interest is only calculated on the total amount we owe minus the prepayments figure so we arent paying any more interest. The question I have is there any point in us filling out a form and getting the bank to take this off the total amount as we arent paying more interest anyway?

Thanks in advance

 

[Brendan Burgess]

No!

Let's say that your mortgage balance is €120k with €20k of overpayments.

They are charging you interest on €100k.

If you ever need to take a break from your mortgage repayments, you can do so until you have used up the €20k.

It might seem that you will never need this, but who knows?

There is no cost in having this flexibility.

If you set the repayments against your capital and you run into payment difficulties, you will go into arrears and get a bad credit record.

Brendan

 

[scholes100]

No!

Let's say that your mortgage balance is €120k with €20k of overpayments.

They are charging you interest on €100k.

If you ever need to take a break from your mortgage repayments, you can do so until you have used up the €20k.

It might seem that you will never need this, but who knows?

There is no cost in having this flexibility.

If you set the repayments against your capital and you run into payment difficulties, you will go into arrears and get a bad credit record.

Brendan

Thanks so much Brendan for this , we were worried about it. We are thinking of fixing for 3 years with them to get a better interest rate

 

[Brendan Burgess]

ptsb is very expensive.

Why don't you switch to another lender?

If you do decide to stay with them and fix, get it in writing that you can continue overpaying without penalty.

Brendan

 

[RedOnion]

We are thinking of fixing for 3 years with them to get a better interest rate

Would you not look at switching to another lender if your circumstances allow?

Even fixing with them works out expensive.

Key Post - I can't switch mortgage provider - can I get a better rate?

Note: thread hasn't been updated with rate cuts since 2019, so better options may be available, particularly for PTSB customers. Edited 24/07/2018 to reflect changes to UB and PTSB options for existing customers. It's difficult to keep up to date for all cases, so please post any questions and...

www.askaboutmoney.com

I'd happily take a look at your situation if you'd be happy to share your info as a case study?

 

[scholes100]

ptsb is very expensive.

Why don't you switch to another lender?

If you do decide to stay with them and fix, get it in writing that you can continue overpaying without penalty.

Brendan

Thanks Brendan, we are looking into this

 

[scholes100]

Would you not look at switching to another lender if your circumstances allow?

Even fixing with them works out expensive.

Key Post - I can't switch mortgage provider - can I get a better rate?

Note: thread hasn't been updated with rate cuts since 2019, so better options may be available, particularly for PTSB customers. Edited 24/07/2018 to reflect changes to UB and PTSB options for existing customers. It's difficult to keep up to date for all cases, so please post any questions and...

www.askaboutmoney.com

I'd happily take a look at your situation if you'd be happy to share your info as a case study?

Thanks Redonion

Would you not look at switching to another lender if your circumstances allow?

Even fixing with them works out expensive.

Key Post - I can't switch mortgage provider - can I get a better rate?

Note: thread hasn't been updated with rate cuts since 2019, so better options may be available, particularly for PTSB customers. Edited 24/07/2018 to reflect changes to UB and PTSB options for existing customers. It's difficult to keep up to date for all cases, so please post any questions and...

www.askaboutmoney.com

I'd happily take a look at your situation if you'd be happy to share your info as a case study?

Thanks Redonion , i'll talk with the other half and let you know. your help is much appreciated