Im on a split mortgage 260k capital and interest on what was svr 4.5% this loan is now showing 1.15% on the loan with the repayment dropping from 1366pm to 916pm...my warehouse account of 170k is still showing 0.% interest to the remaining term...I got this about 6 months ago...i have yet to receive the letter but I think I will be shown where the original mortgage would be had the tracker applied and then given options on where to go from here...if anyone on a split has received a letter would appreciate hearing what was done
Case study Split mortgage and tracker redress
- Thread starter Rory Boyd
- Start date
Brendan Burgess
Founder
- Messages
- 52,149
Update: Rory has sent me his letter, so these are the actual figures
This is what PTSB's FAQ says:
For customers who are now on a Split Mortgage (or other long term treatment for arrears). How will this affect their restructure?
Firstly, as outlined in the letter, and if the customer instructs us to do so, we will restore the customer’s account to the position it would have been in if they had selected the tracker interest rate at the relevant maturity date. Following this account adjustment, we propose to review the situation and to contact the customer to discuss if there is a material change in their circumstances.
Let's try to apply this to Rory's figures.
Mortgage details before the redress:
So, ptsb had figured out that Rory could not meet the full repayments on €430k, so they warehoused €170k at 0% interest.
Refund: €63k
Compensation: €7k
The refund has been paid off the warehouse.
Situation after the redress
The compensation of €7k has been paid directly to Rory's specified bank account.
I would expect ptsb to review the split in time.
This is what the ptsb original split offer letter said:
And from the redress letter itself:
Following this account adjustment, we propose to review the situation and to contact the customer to discuss if there is a material change in their circumstances.
His new mortgage is €367k.
€[email protected]% over 27 years would be a repayment of €1,300, a little bit less than Rory was paying before the redress.
It would seem reasonable to me for ptsb to move the balance from the warehouse to the main mortgage.
This is what PTSB's FAQ says:
For customers who are now on a Split Mortgage (or other long term treatment for arrears). How will this affect their restructure?
Firstly, as outlined in the letter, and if the customer instructs us to do so, we will restore the customer’s account to the position it would have been in if they had selected the tracker interest rate at the relevant maturity date. Following this account adjustment, we propose to review the situation and to contact the customer to discuss if there is a material change in their circumstances.
Let's try to apply this to Rory's figures.
Mortgage details before the redress:
So, ptsb had figured out that Rory could not meet the full repayments on €430k, so they warehoused €170k at 0% interest.
Refund: €63k
Compensation: €7k
The refund has been paid off the warehouse.
Situation after the redress
The compensation of €7k has been paid directly to Rory's specified bank account.
I would expect ptsb to review the split in time.
This is what the ptsb original split offer letter said:
And from the redress letter itself:
Following this account adjustment, we propose to review the situation and to contact the customer to discuss if there is a material change in their circumstances.
His new mortgage is €367k.
€[email protected]% over 27 years would be a repayment of €1,300, a little bit less than Rory was paying before the redress.
It would seem reasonable to me for ptsb to move the balance from the warehouse to the main mortgage.
Attachments
Last edited:
Brendan Burgess
Founder
- Messages
- 52,149
What should Rory do now?
He should certainly consider pro-actively requesting ptsb to revert to an ordinary mortgage.
If he might want to move home in the medium term, the sooner he cleans his credit record the better.
If his credit record is damaged anyway through non-mortgage debts, then fixing the mortgage record is not a priority.
If he has other, more expensive, debt such as a car loan, he would be better off using the extra €400 per month to pay that down quicker.
He should certainly consider pro-actively requesting ptsb to revert to an ordinary mortgage.
- He can meet the full repayments
- His credit record will be fixed
- While the additional payments will be €400 a month, the additional interest will be only €100 per month
- ptsb will probably review it anyway in the near future
If he might want to move home in the medium term, the sooner he cleans his credit record the better.
If his credit record is damaged anyway through non-mortgage debts, then fixing the mortgage record is not a priority.
If he has other, more expensive, debt such as a car loan, he would be better off using the extra €400 per month to pay that down quicker.
hello bendan
im in a similar position to rory and i am awaiting statements and calculations. i was refunded overpayments of 4.5k and had
53k reduced reduced on my warehouse account.
main mortgage account= 170k balance
warehouse account= 162k after adjustment
i originally borrowed 316k. my question is before my arrears where capitalised for the split mortgage
was penalty interest accruing on the interest that wasnt being covered when i was underpaying
my mortgage?
im in a similar position to rory and i am awaiting statements and calculations. i was refunded overpayments of 4.5k and had
53k reduced reduced on my warehouse account.
main mortgage account= 170k balance
warehouse account= 162k after adjustment
i originally borrowed 316k. my question is before my arrears where capitalised for the split mortgage
was penalty interest accruing on the interest that wasnt being covered when i was underpaying
my mortgage?
Brendan Burgess
Founder
- Messages
- 52,149
No. Irish lenders are not allowed charge home owners penalty interest.
Last edited:
Brendan Burgess
Founder
- Messages
- 52,149
Understanding Damien's figures
if im understanding correctly ptsb will reverse to mortgage to where it should be had you been on the correct rate on request?
if they do that and a customer still would have been in arrears do they revert to split? if the customer can afford to make full payments
on the new amount when reversed will credit rating be restored?
if they do that and a customer still would have been in arrears do they revert to split? if the customer can afford to make full payments
on the new amount when reversed will credit rating be restored?
Caroline14
Registered User
- Messages
- 2
Can I ask those of you who are on a split mortgage, have Ptsb agreed to bring the warehoused amount back into the main mortgage account at the new reduced rate? I have a split mortgage and Ptsb are suggested they put the redress amount (31k) off the warehoused account. I would like to revert back to having one account under the new rate of 1.15%. I am confused as to what to do next. There is a compensation amount of 3,784 and also an overpayment of 4.5k due to me. As it stands I have signed nothing!
Brendan Burgess
Founder
- Messages
- 52,149
Padraig Kissane has come across examples where there were little or no arrears and where ptsb has, incorrectly, taken the full overcharge off the warehouse. I have discussed that here:
ptsb may be getting calculations on some split mortgages wrong
ptsb may be getting calculations on some split mortgages wrong