ptsb - why am I paying 3.25%?

ella

Registered User
Messages
22
Letter of Approval- Particulars of Mortgage Loan
Loan Amount €250.000.00
Interest Rate 4.89
L T V 58%
2 year Fixed new Business Home Loan
Period of Agreement 20 Years
Number of Instalments 240
Cost of this credit 138.538.02
APR 4.9%
On expiry of fixed rate period and without affecting the entitlement of the applicant to apply at any time to fix the rate for a further period (if available)the interest rate applicable to the loan will be the then current permenent tsb tracker Mortgage rate .
was put on 3.25+ ECB.
Can the tracker rate be worked out from all of the above
 

Brendan Burgess

Founder
Messages
40,987
May 2010 is after August 2009, so you are on the right rate.

Some though dispute ptsb's right to set the rate at 3.25%

Brendan
 

Brendan Burgess

Founder
Messages
40,987
Because the Consumer Protection Code (and now the EU Mortgage Credit Directive) required lenders to publish this meaningless figure.

Brendan
 

ella

Registered User
Messages
22
My point was the rate has to be set from the draw down of funds. How else could the bank calculate the cost of credit
 

peemac

Frequent Poster
Messages
758
My point was the rate has to be set from the draw down of funds. How else could the bank calculate the cost of credit
They have to give total cost of credit on all loans. Same with apr.
The problem for mortgages is they have to assume rate is the same for the life of the loan as on the day they give the quotation.


Great for fixed rate car loans, but should be ignored for loans that rates can move during the life of the loan.
In your example, if the rate stayed at 4.9% for 240 months, the cost of credit would be the amount quoted.
 
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