Mortgage overpay/overpayment reduce term or monthly repayment help

Nowronganswer

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-Okgo- thanks you.
I took out my mortgage with ptsb via a broker. Are there implications for the broker if i were to switch. As in they were paid a commission for siging me up to ptsb would that be clawed back. I didnt pay any broker fees.
Thanks
 

RedOnion

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-Okgo- thanks you.
I took out my mortgage with ptsb via a broker. Are there implications for the broker if i were to switch. As in they were paid a commission for siging me up to ptsb would that be clawed back. I didnt pay any broker fees.
Thanks
Yes, technically the bank can claw back some of the broker commission if you switch within 3 years. Some brokers have a clause that thy can try to recoup it from the borrower.
 

Laughahalla

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263
This is the wording from PTSB about regular overpayments on variable mortgages

"These overpayments will be credited to your mortgage account once you instruct us to do so. It will enable you to benefit from any interest savings as well as funding future payment holidays or underpayments. Although the scheduled term on your mortgage will not be reduced, by continuing to pay the regular overpayment, a credit will accumulate which should be sufficient to redeem your loan at an earlier date. If you choose to cancel the overpayment option then you will need to inform us in writing that you wish to cancel the overpayment and to use the credit on your account to either reduce your term or to reduce your repayment amount. Certain conditions apply when making overpayments to fixed rate loans. See the important information at back under ‘Fixed Rate Loans’ for full details. No refunds of lump-sum payments will be made to the applicant when payment thereof is received by permanent tsb"
 

Nowronganswer

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Thanks you Laughahalla.
I have that read. They had said when i rang them that the "certain conditions re fixed rate loans" only apply to interest only and other types of mortgages but not the type i am on.
 

Nowronganswer

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LTV current value is 330k. Could i get the valuer to value it higher say 350k and id have a less than 80% LTV in less than one year then switch.
 

Nowronganswer

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PTSB do a 3 yr fixed high value mortgage at 2.8% for mortgages over 250k LTV 80 to 90%, I drew down a 285k mortgage, curious to know why I was not offered this. i did get the 2 % cashback. I was thinking maybe the high value mortgage doesn't include the cashback. Can anyone clear this up.
Can anyone tell me of the PTSB did not offer me this rate.
 

RedOnion

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PTSB do a 3 yr fixed high value mortgage at 2.8% for mortgages over 250k LTV 80 to 90%, I drew down a 285k mortgage, curious to know why I was not offered this.
It looks like you should have been offered it. It includes cashback.
Did your broker advise you on the rate options?
When did you apply?
 

Nowronganswer

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No way! that is scandalous.
I drew down January 2021, Applied back in October 2020
No it was only 2.95% on the table with ptsb.
 

Nowronganswer

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Can i switch to the Lower Rate? Am i entitled to switch to the Lower Rate now. Has anyone any feedback in this.
Thanks everyone.
 

RedOnion

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Can i switch to the Lower Rate? Am i entitled to switch to the Lower Rate now. Has anyone any feedback in this.
Thanks everyone.
@Nowronganswer as discussed in the other thread, I gave you some incorrect advice regarding the rates that should have been offered to you when you drew down your mortgage. Thanks to @Paul F for correcting my error.

I've taken a look at this again, and based on the timeline of your application / drawdown the rate of 2.95% is the best that was available to you from PTSB at the time.

I am assuming that you received cashback on drawdown, and that you have opened an current account with them also so that you receive cashback on every repayment made to your mortgage?

What you might not be factoring in is the effect of the cashback, and that might be why your broker recommended PTSB to begin with. If you are getting the 2% cashback on every repayment, the actual cost to you over 3 years is the same as getting a 2.2% rate (even better if you're making overpayments and getting cashback on them).

Unfortunately, PTSB have separate rates for 'New Business' vs existing customers, so there are no options currently available for you to switch to a better rate with them. No other lender will consider you as a switcher on a new mortgage.
Keep an eye on PTSB rates, as things might change over the next few years if they want to keep existing customers.

And apologies again for the incorrect guidance previously.
 
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