PTSB to launch non-cashback mortgage

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RedOnion

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PTSB will be launching a new mortgage rate later this month, which doesn't have cashback on drawdown.

Initially it will only be a 4 year rate, at 2.25% for LTVs <80%. Higher LTVs will be 2.55%.

For borrowers who switch their current account to PTSB, they can get the 2% of repayments back until 2027 as with other mortgages.

Details in yesterday's Sunday Times. Unfortunately link is behind paywall.
www.thetimes.co.uk

Cashback on way out as Permanent TSB plans alternative mortgage deal

Permanent TSB is preparing to offer house buyers an alternative to the cashback mortgage, which has been widely criticised for obscuring the true cost of credit
www.thetimes.co.uk www.thetimes.co.uk
 
An interesting proposition. PTSB can test the waters of how sensitive switchers are to rates Vs cashback. Market leader in the 4 year fixed market right now appears to be Ulster so it makes sense any new products would align if they're going to buy, and attempt to retain, Ulster's existing book.

PTSB don't currently offer a 4 year fixed so no direct comparison between new and existing rates. However, right now if you switched and wanted to lock in for a minimum of 4 years you would be looking at 3% (for 5 years) plus 2% cashback. Going with the new non-cashback product would appear to be the better option. Over 4 years it would save about 0.9% of the balance over and above the cashback.

While it is a competitive rate for 4 years I imagine most on here will still think that other providers are a better bet. Based on the suite of rates offered by other providers (plus cashback) and the better treatment of existing customers?
 
If you weren't with PTSB (or Ulster) you could get the same rate* plus cashback of €1500 and the option to overpay cost free by 10% per annum by switching to Ulster now. You'd likely end up as PTSB customer at the end of your fixed term but be better off.

*Assuming you've a BER of B2 or higher.
 
skrooge said:
An interesting proposition. PTSB can test the waters of how sensitive switchers are to rates Vs cashback.
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Avant are already doing that. PTSB are hardly testing the market by offering the same rate as KBC, who are offering 3K cash.
 
shweeney said:
Avant are already doing that. PTSB are hardly testing the market by offering the same rate as KBC, who are offering 3K cash.
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Neither KBC or Avant offer a 4 year fixed mortgage.

Yes there is a choice of cashback and rates between lenders but not at a single lender. This is the closest we will have come.

As nice as it is having Avant in the market they're so far out of sight the other banks aren't going to try and compete with them. So what happens back in the pack is probably more relevant for most.
 
PebbleBeach2020 said:
Bank of Ireland have offered cashback or no cashback mortgages. Fir last year or two I'd say.
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I was offered a fixed rate of 2.3% for 5 years for >85% LTV around 18/24 months ago. However, the 2.8% for the same time was cheaper when cashback was included so didn't go with it.
 
shweeney said:
Avant are already doing that. PTSB are hardly testing the market by offering the same rate as KBC, who are offering 3K cash.
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KBC only offer that rate for <60% LTV for 2 or 3 years, and where you get the current account discount.

The KBC 3k cashback is only for switchers. It's 1,500 for buyers.

There are a lot of circumstances where the PTSB rate would be better than alternatives from KBC. If you switch your current account to PTSB, you'll get back 2% of the repayments until 2027.
 
The advertised Bank of Ireland product without cashback is for High Value Mortgages, i.e. borrowing over 400k. And only fixed for 5 year term.

AIB have been able to offer all kinds of mortgages to the market through their various brands, but it's more difficult for the other lenders to do without eroding the rates in their existing mortgage books. It'll be interesting to watch this development from PTSB.
 
launched today

Permanent TSB launches new 4-year fixed rate mortgage product from 2.25%

New product broadens choices for customers by offering an additional option to cashback at drawdown



Monday, March 29th. Permanent TSB has launched a new 4-year fixed rate mortgage product for new customers from as low as 2.25%. Building on the success of its cashback offer, this new product broadens the choice for customers by offering an additional option to cashback at drawdown. The bank will also continue to offer the cashback at drawdown feature for mortgage customers.



The fixed rate for the 4-year term starts at 2.25% (LTV<80%) rising to 2.55% (LTV between 80% and 90%). The new product is now available for all new home loan customers including first time buyers, people moving home, and customers seeking to switch mortgage provider. It is not available for Buy To Let customers.



Speaking today Laura Temple, Head of Lending Products, said: “We are introducing this new option to broaden the choice available for customers. Our cashback mortgage offering is extremely popular with customers, but there are some who would prefer to choose a lower rate no cashback option and this product is designed with them in mind.”



Note to Editor:

· “Cashback at drawdown” is the facility for borrowers to receive 2% of the value of the mortgage in a direct payment once the mortgage is drawn down. It is designed to help new home- owners to manage the initial expenses associated with buying a home.

· Customers who pay their mortgage via a PTSB Explore Current account can continue to receive 2% back on the value of their monthly mortgage payments. This is available on the new 4 year fixed rate products as well as on all our current cashback at drawdown products.
 
In a scenario, where PTSB buy the UB loan book, this rate won't be available to those customers. And indeed, it's not available to current PTSB mortgage holders who have a fixed term ending.
 
HollowKnight said:
In a scenario, where PTSB buy the UB loan book, this rate won't be available to those customers. And indeed, it's not available to current PTSB mortgage holders who have a fixed term ending.
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What if you were to switch to another lender when your fixed is up for say 1 year then switch back to ptsb would you ge the lower rate??
Thanks
 
HollowKnight said:
In a scenario, where PTSB buy the UB loan book, this rate won't be available to those customers. And indeed, it's not available to current PTSB mortgage holders who have a fixed term ending.
Click to expand...
Also might i ask- are ptsb willing to lose customers who are coming to the end of their fixed fate by not offering them the lower rates. would they prefer to not offer them the lower rate and lose custom?? cant rap my head around that one.
 
Nowronganswer said:
What if you were to switch to another lender when your fixed is up for say 1 year then switch back to ptsb would you ge the lower rate??
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Yes, but PTSB don't currently accept switchers who've been with their current lender less than 12 months, and with thus rate the borrower would have to pay their legal fees.

The market will evolve further over the next 12 months, but this is how things currently stand.
 
Thank you @RedOnion . AIB or haven so look like the best bet when coming off a fixed rate with ptsb as in my case.
I plan to go with ''Haven 5 year fixed 2.55% with 5k cash back'' or ''AIB 2.15% green 5 year fixed with 2k switchers cashback.
That is in 3 years time so no panic yet.
Well i would switch now but took out mortgage via broker so worried about broker clawback.
 
Out of interest here is what PTSB offered me:

Original AIP based on 84% LTV borrowing 210k over 20 years
Nothing fantastic.

product descriptionborrowing rate %initial rep €rep after (3.9%) post FR €APRCOverall payable €Cashback at drawdown €
2 yr fixed3.1%117512533.9%2993764200
3 yr fixed2.95%115912473.8%2965754200
4 yr fixed2.55%11712343.5%2910270
5 yr fixed3.00%116412393.6%2932814200
7 yr fixed3.00%116412303.5%2900374200

Eventual amount selected and rate - borrowing 167k over 20 years 81% LTV
product descriptionborrowing rate %initial rep €rep after (3.9%) post FR €APRC %Overall payable €Cashback at drawdown €
2 yr fixed3.19349963.82381643340
3 yr fixed2.959229923.72359373340
4 yr fixed2.558999813.52315230
5 yr fixed3.009269853.62333153340
7 yr fixed3.009269783.42307353340
 
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