#### Brendan Burgess

##### Founder

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I was vaguely aware of this but it was brought to my attention this morning by someone who is choosing ptsb because of this facility.

In simple terms, if you overpay your ptsb mortgage, the overpayments go into a separate credit account.

The interest is charged on the net balance.

If you need cash in the future, you can't get the money back, but you can use the overpayment account to fund the monthly payments.

So if you are taking out a €200k mortgage for the first time and you don't know whether to go for a 20 year mortgage or a 35 year mortgage?

Or you are not sure about how much you should have in rainyday fund?

Take out a 35 year mortgage where the scheduled repayment will be €800 a month.

But pay it as if it were a 20 year mortgage, €1,100 a month.

You will pay the same interest as a 20 year mortgage.

But if your circumstances change after 2 years, you will have build up a fund of €7,200 which will keep up your repayments for 9 months.

If you had taken out a 20 year mortgage, you would be in the same net position, but you would now be going into arrears.

Brendan

In simple terms, if you overpay your ptsb mortgage, the overpayments go into a separate credit account.

The interest is charged on the net balance.

If you need cash in the future, you can't get the money back, but you can use the overpayment account to fund the monthly payments.

So if you are taking out a €200k mortgage for the first time and you don't know whether to go for a 20 year mortgage or a 35 year mortgage?

Or you are not sure about how much you should have in rainyday fund?

Take out a 35 year mortgage where the scheduled repayment will be €800 a month.

But pay it as if it were a 20 year mortgage, €1,100 a month.

You will pay the same interest as a 20 year mortgage.

But if your circumstances change after 2 years, you will have build up a fund of €7,200 which will keep up your repayments for 9 months.

If you had taken out a 20 year mortgage, you would be in the same net position, but you would now be going into arrears.

Brendan

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