Ptsb Mortgage Fixed Rates February 2019

Discussion in 'The Fair Mortgage Rates Campaign' started by EFAIRF, 6 Feb 2019.

  1. EFAIRF

    EFAIRF New Member

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    6
    Hi Brendan

    Unfortunately, we have a SVR mortgage with Ptsb taken out in 2006. We have an approximate LTV value of 87% and as you can imagine, the possibility of moving banks was never an option in the past but hopefully, in the next year or two, we'll be in a position to look at other lenders.

    Currently, we are paying 4.30% and our remaining mortgage balance is approx. €280,000.00. We received our Certificate of Interest from the bank yesterday (not pleasant reading!) and they appear to be offering a new 2, 3 and 5 year fixed rate of 3.70%.

    The question is should we fix at this lower rate? Or, should we sit tight and wait for the SVR rates to fall (which may be the case given the world economy). I know it's so hard to tell what the future holds but any advice would be greatly appreciated.

    Many thanks.
     
  2. RedOnion

    RedOnion Frequent Poster

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    2,700
  3. EFAIRF

    EFAIRF New Member

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    Hi there

    Many thanks for that swift response - we will fix asap!
     
  4. EFAIRF

    EFAIRF New Member

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    Hi there again

    How do I work out the possible savings per month after moving to the fixed rate?

    Many thanks.
     
  5. Sean Og

    Sean Og Frequent Poster

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    128
    Ok your LTV is 87 % but have you missed any payment etc since 2006? If you have a perfect credit history and excellent repayments on your mortgage since 2006 then if i was you i would be switching to avail of the 2% cash back available from EBS and BOI, at 280k that is €5600 each time less solicitors fees so you could have between €8000-9000 in your hand. If you talk to PTSB beforehand and tell them you are switching to BOI to get the cash back but will switch back to them within 3 months will they allow that and give you the 2% cash back. I did this with EBS but they don't have a time limit unlike PTSB who require you to be with your current lender for 24 months before you can switch to them.
     
  6. RETIRED2017

    RETIRED2017 Frequent Poster

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    779
    The requirements on the banks to notify Mortgage holders of better rates is beginning to have affect
    Good to see,
     
  7. RedOnion

    RedOnion Frequent Poster

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    2,700
    280k X 0.6% = 1,680 interest saving per year.
    You repayment won't drop as much, but you'll be paying slightly more off capital balance.

    If your income allows you to switch lender, you'd be better do that.
     
  8. EFAIRF

    EFAIRF New Member

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    Hi there

    Glad to say we never missed a payment since 2006 so that will always be in our favour. I think I will mention the switching scenarios with Ptsb and see what they say. Thanks again..
     
  9. EFAIRF

    EFAIRF New Member

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    6
    Hi there

    I wrote to Ptsb and requested their 2 year fixed rate of 3.70%. Amazingly, my mortgage payments will actually increase! We were paying €1,568.49 per month and now from March, we will be paying €1,571.79 per month on the reduced interest rate.

    Am I missing something here?
     
  10. Ger Fleming

    Ger Fleming Frequent Poster

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    What about interest relief.? Is that accounted for
     
  11. EFAIRF

    EFAIRF New Member

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    Hi there

    I think so - I will ring the bank today. I hope it won't be this high!
     
  12. Paul Reilly

    Paul Reilly Frequent Poster

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    We were in your situation and have since went fixed at 3.7% for 5 years with TSB. Our capital repayments have increased to over half now so that when the 5 year fixed is up we will be switching if affordable.

    The most any bank would lend us last year was 124k but the loan was 140k so we had to fix. Still 3.7 percent is still an unfairly high amount and our repayments went up due to Fine Gael refusing to extend MIR in full to 2020 as was proposed.

    But on the flipside the highest our mortgage will be in the next 5 years is 830 a month whereas if I stayed on SVR you are on it would have been 910 euro.

    I know when fixed rate ends that interest rates here will likely be near 5 per cent again so that is why it is useful to get more of your capital repayments out of the way presently so you can limit the damage in the future.
     
  13. bestsecretary

    bestsecretary New Member

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    What's your logic or thinking behind interests rates here being 5 per cent in 5 years time. All the economic indicators and commentary suggest no movement in rates until potential 2022 so I don't see the ECB increasing interest rates by 2-3% in the space of 18-24 months.