those rates are fairly high.. im coming off a two year fixed next month with ptsb. those rates depress me!
From the chart it looks like the 3.1% and 3.7% are LTV <50%"At Permanent TSB, if you are a new customer you can get a two-year mortgage loan fixed at 3.1%. If you are an existing customer you would be paying 5.25%. If you are a new customer borrowing for five years from PTSB, the rate is 3.7% and if you are an existing customer you are going to be asked to pay 5.75%," he said.
With the fixed rates, I guess the call then would be will the ECB raise rates 1% over the next 2 years, 1.5% over 5 years? I guess even if they do we'd still be saving money as the rates rise to meet these figures.
Your 2 year rate is 1% above the tracker rate, so you'd probably need the ECB to raise rates by 2% over the next 2 years to break even. Remember that if you take this rate today, you will be paying 1% more immediately. You will need this rate to be 1% below (not equal) at some stage to recoup this money i.e. (+1%) + (-1%) = 0%.
Just finished our fixed term for year at 4.99% with permo.
They've offered us these options
Tracker Variable Rate (ECB + 3.25%) : 4.25%
LTV Variable Rate: 4.15%
2 Year Fixed: 5.25%
5 Year Fixed: 5.75%
7 Year Fixed: 6.1%
10 Year Fixed: 6.1%
On paper it would seem to me that the tracker would be the best option of the variable rates in the medium term anyway since it would avoid permo deciding to put their rates up outside the ECB. 7 and 10 years are too long and the rates are just too high.
With the fixed rates, I guess the call then would be will the ECB raise rates 1% over the next 2 years, 1.5% over 5 years? I guess even if they do we'd still be saving money as the rates rise to meet these figures.
Opinions?
Hi Corklad
Did you ever get any further with the TSB with this unreasable tracker rate. I have been offered something simular and my financial advisor has informed me that the rate offered is contratory to my terms and conditions of my mortgage. He says the rate of margin on the tracker can be NO HIGHER DURING THE LIFE OF THE MORTAGE than the margin taken during the original offer, IE our 5 yr fixed was 4.99%. The ECB base rate when we took the mortgage was 3.25%. The margin on the mtg was 1.74%. The ECB rate is now 1.5%. TSB can only charge us 3.24%(thats the ECB rate of 1.5% plus the orginal margin of 1.74%) on our tracker on NOT the 4.75% they are offering in their loan letter. Our terms state this on the back. ENSURE YOU CHECK THIS AND GO BACK.... YOU HAVE A CASE TO CHALLANGE AS THE TERMS WERE BROKEN if is this is the case.. good luck
those rates are fairly high.. im coming off a two year fixed next month with ptsb. those rates depress me!
You've cheered me up a little, Corklad. Thanks for that!
He says the rate of margin on the tracker can be NO HIGHER DURING THE LIFE OF THE MORTAGE than the margin taken during the original offer, IE our 5 yr fixed was 4.99%. The ECB base rate when we took the mortgage was 3.25%. The margin on the mtg was 1.74%. The ECB rate is now 1.5%. TSB can only charge us 3.24%(thats the ECB rate of 1.5% plus the orginal margin of 1.74%) on our tracker on NOT the 4.75% they are offering in their loan letter.
We are waiting to see how they calculated the inital fixed rate of 4.99%. They dont just pluck figures out of the sky when working these out.
The CCA states that the MARGIN RATE cannot be exceeded during the term of the loan.
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