PTSB Permanent TSB - Overpayments: Leave as credit or take off principal

We left ours as credit and used it to fund a 5 month payment holiday for maternity leave and plan on overpaying after payment holiday to fund future maternity leave. I know we could put it in savings but this guarantees it goes towards mortgage
 
we do the same with our tracker mortgage with ptsb.
but something that i have noticed over the last 4 or 5 months as the ecb rates have been coming down (and therefore our overpayments have been increasing) is that the flexi feature end date on the mortgage a/c online summary screen has stayed the same.

surely this should be changing with the interest rate decreases.

has anyone else noticed this?
 
Mothy said:
We've been overpaying our mortgage for the last 3 years now and have amassed a sizeable credit on our mortgage account. Is there any benefit to taking this amount off the capital / principle amount?

As far as I know, the credit amount is taken into account when the interest is being calculated e.g. owe 100K, have credit of 10K, interest is calculated on 90K.
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Just take a minute to do a quick calculation:

Look at your last statement. If the interest rate is (say) 2% and your current loan balance is 90K with a 10K prepayment credit, then your monthly interest should be:
90K x 0.02 / 12 = €150

If on the other hand you aren't benefitting from the
prepayment then you would see a monthly interest of:
100K x 0.02 / 12 = €167

I don't have any special arrangement with PTSB, but I do get the credit for the prepayments.

Good to know they will allow these towards a payment holiday if necessary.
 
I'm new to the mortgage game and have a 2 yr fixed rate. Can we also pay an extra amount (put in monthly or ad hoc) and leave this overpayment there in case of higher interest rates when the fixed term ends or payment holiday needed? We are with ICS and I have no online account with them to see the mortgage balance / pay extra off. Anyone got any advice?
 
fizzelina said:
I'm new to the mortgage game and have a 2 yr fixed rate. Can we also pay an extra amount (put in monthly or ad hoc) and leave this overpayment there in case of higher interest rates when the fixed term ends or payment holiday needed? We are with ICS and I have no online account with them to see the mortgage balance / pay extra off. Anyone got any advice?
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I don't think that is possible when you are on a fixed rate. You would have to check your own terms & conditions though.
 
Niallers said:
PTSB offer this. roll your own current account mortage if you agree it with them.

thanks for the correction-Mortgage repayment insurance. It is different from saving the money elsewhere becuase the money in credit goes toward interest calculation potentially knocking years off your mortgage.
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Does anyone know if PTSB is still offering this Current Account Mortgage, where the amount in your current account is offset against the capital on your mortgage?

I am in process of getting a mortgage from them at the moment and came across this thread. They appear to have scrapped their 1 year reduced mortgage for new customers(it's not on their website anymore), but must ask them on Monday in person. Before I complete the mortgage paperwork would like to get the best deal out of them that's possible.
Thanks
 
The PSTB branch manager I was dealing with last summer said I could overpay and that the interest would be calculated as other posters have previously described. I must check my paperwork to see whether that is indeed the case.

They don't call it a current account mortgage though.
 
Brendan,

In the context of this thread, I don't understand your last post.

As far as I can see, PTSB offers savings by allowing mortgage holders to overpay by either lump sums or regular monthly overpayments.

The overpayments may be used to reduce either the term of the loan or the monthly repayment.

Is there more to it than this?

Why would PTSB customers divert their mortgage payments into regular savings accounts, the interest on which would attract 41% DIRT and in some cases an additional 4% PRSI? Then, there is also the effect of the rate of inflation on savings.
 
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