@Cavangal Based on those rates I'm guessing you are with PTSB.My options are fix 2yrs @3.1% or 3yrs @2.95% or 5yrs @3%
22 years left from August coming with Ptsb.@Cavangal Based on those rates I'm guessing you are with PTSB.
How long is left on your mortgage? PTSB also have a 7-year 3.0% fixed rate.
Thanks for your replyFixing seems a bit of a no brainer in your circumstances.
From those three options, I would be inclined to fix for 5 years @3%.
Thanks, I intend to fix but am unsure for how long.If it saves you money fix.
That's the option I'd go for in that case.PTSB also have a 7-year 3.0% fixed rate.
If I had a lump sum in say four or five years do they charge much to break a fixed rate? I've never fixed before.That's the option I'd go for in that case.
The break fee depends on:If I had a lump sum in say four or five years do they charge much to break a fixed rate? I've never fixed before.
Or you could treat yourself, you've explained some of the difficulties you have endured and if you can pay your mortgage comfortably fixed why spend more on it?If I had a lump sum in say four or five years do they charge much to break a fixed rate? I've never fixed before.
Thank you for the link to the other thread, a very interesting read. Something confuses me though.The break fee depends on:
So if you fix for a shorter period, your break fee will on average be lower than if you fix for a longer period. But it is possible for break fees to be low or even zero.
- Your outstanding balance
- How long is left on the fixed-rate period
- The change in interbank interest rates (not mortgage interest rates) from when you fixed to now
The big unknown in all of this is future interbank rate moves. As interbank interest rates rise, the break fee falls (all other things being equal).
But Permanent TSB have a very useful feature around overpayments (both lump sums and regular overpayments), which makes the issue of break fees largely irrelevant:
- You can overpay by as much as you like each month without penalty, and this builds up as a credit on your account
- You can use this credit to take a payment holiday or to reduce the monthly repayments (or to pay off part of the principal at the end of the fixed period)
- You are only charged mortgage interest on the net balance, i.e., on the mortgage balance after the credit has been subtracted
- See this thread for more details
You made perfect sense.Thank you for the link to the other thread, a very interesting read. Something confuses me though.
If a mortgage is fixed at let's say 3% are you allowed to make over payments as a credit on the account and if so does this reduce interest or am I wrong thinking this because it is fixed? I hope that made sense.
Thanks for your reply. I think fixing it for 7 years will give me the best security for the foreseeable future.You made perfect sense.
You can definitely make overpayments on your Permanent TSB fixed-rate mortgage. By default, they will sit in your mortgage account as a credit. (You won't be charged a penalty/break fee for making this overpayment.) When PTSB are calculating the interest you owe each month, they will first subtract the credit from your outstanding balance, so you will pay less interest.
What is not 100% clear to me is if this reduction in interest will be passed on to you by means of a lower monthly repayment, or if PSTB will instead keep the monthly repayment the same as when you fixed (which means you would pay more off the balance each month). I'd imagine it is the first scenario (a slightly lower monthly repayment). But in either case you will be saving interest.
I would be grateful if you could contact PTSB and ask them what will happen to your monthly repayment amount if you make an overpayment. It will be useful information for others here.Thanks for your reply. I think fixing it for 7 years will give me the best security for the foreseeable future.
I would be in a position to make an over payment so I will report back on how it affects the fixed payments.
Yes I will contact them next week.I would be grateful if you could contact PTSB and ask them what will happen to your monthly repayment amount if you make an overpayment. It will be useful information for others here.
I received options from PTSB by post and decided to fix for 7 years at 3%.The rates are valid for 30 days.I would be grateful if you could contact PTSB and ask them what will happen to your monthly repayment amount if you make an overpayment. It will be useful information for others here.
I received options from PTSB by post and decided to fix for 7 years at 3%.The rates are valid for 30 days.
I spoke to a lady on the phone who said that I can set up an overpayment after fixing however this will build up as a credit on the account and will not affect the fixed payment. Any credit built up is non refundable.
That is my assumption too. If the monthly repayment stays the same and they are only charging interest on the net balance (the balance after subtracting the credit), it seems that the extra must go towards reducing the capital. If correct that means that the mortgage will be paid off sooner.I assume based on that above, re monthly repayment staying the same, that means you are paying more off the capital off each month, even if your overpayment(s) have not been applied?
That is my assumption too. If the monthly repayment stays the same and they are only charging interest on the net balance (the balance after subtracting the credit), it seems that the extra must go towards reducing the capital. If correct that means that the mortgage will be paid off sooner.