Implications of ptsb sale for mortgage holders

Coldwarrior said:
My break fee turned out to be 0, it was 5 or 6k a few months ago, I'm guessing it's zero now due to the Iran war and the market now expecting inflation and ECB rates to increase.
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For what it's worth, the PTSB formula for calculating the breakage fee is described here.

Important Regulatory Information - Help | permanent tsb

Get more important information relating to Home Loan Mortgage Repayment Difficulties.
www.ptsb.ie www.ptsb.ie
But the values for "I" and "S" may not be obvious and may need to be obtained from the lender at any point in time.
 
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Pawel Nowak said:
Point taken but halifax sold their loan book to several other companies, Ulster Bank followed a similar path. As I mentioned it's doubtful this development will benefit regular customers.
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Because they were closing down. Bawag might sell of some non performing loans but PTSB were doing that anyway. They won't sell off the whole loan book though. PTSB reliability has been rubbish the past while, it seemed like their online banking services were down every few weeks. Bawag could improve their online banking services
 
Rang them earlier was quoted 7k I think about six months ago, down to just under 4k with two years to go. Not worth it yet but will see again in six months
 
Rang myself yesterday and was quoted €0 breakage fee and that they would hold it for 10 days.

They are also sending me some documentation on my options via post.

Think I was quoted approx €4k to break 6 months ago.

Going to attempt moving to AIB, it’s a €250pm saving with 3.2% 3year fixed versus the 4.3% I’m on currently with PTSB which is 3 years remaining of a 5 year fixed.

Can anyone shed some light on the what happens if I proceed with the switch process and the breakage fee has gone back to 3k or 4k… would this likely ever happen or can I just pull out of the switch?
 
davefla said:
Can anyone shed some light on the what happens if I proceed with the switch process and the breakage fee has gone back to 3k or 4k… would this likely ever happen or can I just pull out of the switch?
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So as market interests have risen it basically means ptsb has gone from facing a loss in revenue from you breaking out of your mortgage to a position were market rates are such that they are arguably better off I.e., zero break fee. For the break fee to return, market rates, and expectations around future rates would need to drop back from where they are today.

It's a balancing act of course as the market expectations around higher market rates may also feed through to higher retail rates at ptsb or AIB.

You can pull out of a switch at any stage up until your solicitor pays off mortgage 1 with mortgage 2. Don't get too preoccupied with the break fee as you note yourself the interest rate difference alone is a tidy savings.
 
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