If you are paying 4.5% SVR to Bank of Ireland or permanent tsb, you have only yourself to blame!

Brendan Burgess

Brendan Burgess

Founder
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Sarenco made this point here, but I think it's well worth highlighting.

If you are paying 4.5% to permanent tsb or Bank of Ireland, you should switch to EBS or Ulster Bank, if you can.

If you can't switch, or if the costs don't cover the savings because you have a small mortgage,

permanent tsb customers can move, without charge, from the SVR to the Managed Variable Rate according to the following table

upload_2016-10-21_9-55-38.png

Despite, permanent tsb writing to all SVR customers twice about this, only 20% have actually moved.

There is no downside to making this move. (The only reason you might delay making the move is that you expect to drop into one of the lower LTV bands in the immediate future. For example, if you plan to pay off a lumpsum which would bring you from just above 70% to just below 70%, you should not move until then.)

Bank of Ireland customers can fix their rate for one year as follows:
<80%: 3.4%
>80%: 3.55%

If you can't switch, there is no reason for you not to fix for one year.

Brendan
 
I'm with ptsb on their MVR of 3.9%, my ltv has dropped since (approx. @55% ltv) and I could get a much better rate with another lender. I've approached a few but as I've got 4 kids my net disposable rules me out switching.

My main query is has anyone been able to get (as an existing customer)one of the new customer deals for fixing from ptsb? If I could fix for 2 years with them would drop to 3.2%. Probably a long shot but thought I'd see if anyone here had any joy cutting a deal.

Thanks
 
@sonandheir I am not sure of any bank cutting deals. I guess its a case of trying and finding out. Might be worth trying to see if you can get approval in principle from some bank and then go and talk to them. Without that, you don't really have much leverage.

However, I do want to point out that this is the exact issue that @Brendan Burgess mentioned yesterday and in the papers as well this morning relating to Section 7 - treating new customers and existing customers equally. There are a large number of customers who could be helped by this section alone. While it does not solve everyone's scenario, there can be few 'constitutional' distractions to it and therefore could be implemented quickly.

I would love to see Michael McGrath split out this section into a different bill, just to see how the Central Bank and Dept of Finance try and defend it !4
 
Thanks for highlighting this Brendan - I think it's a point that sometimes gets lost in the "noise".

I fully appreciate that a lot of people are practically allergic to dealing with banks at this stage but it really makes no sense to pay more interest on a loan than is absolutely necessary.
 
Personally I think it must be very disheartening for the likes of Brendan to see the 20% switch rate. After all the effort made to try and get people cheaper mortgages, a simple telephone call cannot be made to save yourself potentially thousands over an extended period.
 
gnf_ireland said:
Personally I think it must be very disheartening for the likes of Brendan to see the 20% switch rate. After all the effort made to try and get people cheaper mortgages, a simple telephone call cannot be made to save yourself potentially thousands over an extended period.
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Agreed. Very annoying, and then those people will go out of their way on budget day to fill up their car before a petrol hike, probably costing them more in petrol to get there. Long term vs short term, most people are blind. This is why the 2% cashback has been such a success for banks.
 
It does seem peculiar that the take-up for the PTSB MVRs is so low. I'd wonder though how many customers are like me, that is still have an LTV of over 90%? I wouldn't consider myself a real outlier (maybe I am?) but although house prices are increasing the LTV is still too high - and I've been paying down my mortgage whenever I've been able over the last few years.

Of course when I get within sniffing distance of 90% I won't be looking at the MVR of 4.2% with PTSB! Hoping for AIB or Ulster Bank or whoever nearer 3.5%.
 
bdecuc said:
It does seem peculiar that the take-up for the PTSB MVRs is so low. I'd wonder though how many customers are like me, that is still have an LTV of over 90%? I wouldn't consider myself a real outlier (maybe I am?) but although house prices are increasing the LTV is still too high - and I've been paying down my mortgage whenever I've been able over the last few years.

Of course when I get within sniffing distance of 90% I won't be looking at the MVR of 4.2% with PTSB! Hoping for AIB or Ulster Bank or whoever nearer 3.5%.
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I think the reason why so many do not take action is a complex issue. Personally i will not switch from VHI or ESB even though i might save money. I find it hard to understand why. Something about not rocking the boat or the devil you k now is ... It just does not make sense.
 
trojan said:
I think the reason why so many do not take action is a complex issue. Personally i will not switch from VHI or ESB even though i might save money. I find it hard to understand why. Something about not rocking the boat or the devil you k now is ... It just does not make sense.
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While I can understand VHI at one level, the ESB I cannot if I am being honest. The underlying electricity all comes from Electric Networks Ireland no matter who your use, so its the same service.

But yes, it is a complex issue and not one easy to explain at times.
 
The question is - does this "inertia" cause banks to keep their rates (and profits) higher, or does it really make a difference to market competitiveness?

I think this has shaped the market so that new customers get the better deals - cashback and/or lower rates for new customers. I would imagine that these new customers are not switchers (as apparently 80% stay put) but new buyers and movers. The banks know this. The existing customers, either by "inertia", or already on the lowest available rate, or by lack of ability, suffer the most from the rip-off rates.
 
sonandheir said:
I'm with ptsb on their MVR of 3.9%, my ltv has dropped since (approx. @55% ltv) and I could get a much better rate with another lender. I've approached a few but as I've got 4 kids my net disposable rules me out switching.

My main query is has anyone been able to get (as an existing customer)one of the new customer deals for fixing from ptsb? If I could fix for 2 years with them would drop to 3.2%. Probably a long shot but thought I'd see if anyone here had any joy cutting a deal.

Thanks
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Hello,

Regarding the PTSB fixed rates for existing customers, I have a complaint with the Ombudsman at the moment, the Ombudsman has reviewed the case and has written to PTSB for further information, I hope to have a decision before Christmas. It might be worth complaining to PTSB, the more complaints the better.

Regards

T
 
tommyryan55 said:
Hello,

Regarding the PTSB fixed rates for existing customers, I have a complaint with the Ombudsman at the moment, the Ombudsman has reviewed the case and has written to PTSB for further information, I hope to have a decision before Christmas. It might be worth complaining to PTSB, the more complaints the better.

Regards

T
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Thanks Tommy for that info. I will get on to them tomorrow. Will let you know how I get on.
 
I switched to the MVR as soon as I got letter.

I will switch from TSB as soon as positive equity

On fixed mortgage for existings I will write a letter too.
 
re:pTSB Fixed Rate New Customer at 3.1% not being offered to existing customers like myself on 3.7%.

I sent a twitter to @permanenttsb and they replied yesterday as follows:

"Hi *****, this is something we are currently looking into and our customers will be notified once it is applied"

I also sent an email to PTSB customer relations and also logged a complaint on the online complaint form
at the financial regulator
(I know you are supposed to wait until PTSB are given some time to reply to the complaint before doing that but I sent it anyway).
 
Its nearly two years since PTSB first told me they were looking into the fixed rates issue and there would be an update shortly.
 
sonandheir said:
I could get a much better rate with another lender. I've approached a few but as I've got 4 kids my net disposable rules me out switching.
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You should try Ulster Bank if you haven't already. They are more child friendly than the others.
 
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