Switching from PTSB Tracker ? Best Switch need advice

[Keengardener1]

Switching from PTSB Portable Tracker
Very nervous I make wrong choice - Need some advice please !

History
I bought a new house 2017 & due to not having a lot of time to close the deal i availed of the PTSB Portable tracker product I transferred existing tracker mortgage ECB +1.68% to new house with 1% Uplift so new Tracker rate is +2.68%

second mortgage taken for the balance of the mortgage need on a 1 Year Fixed discounted rate 3.2 % and it is now coming to the end of this deal. Moving onto a SV of 3.7%

I want to move from PTSB as my mortgage payments are high @ €1850 and if the ECB tracker rate increases by mortgage will increase upwards and I already am finding it tough each month .

I have large childcare costs and I want to get my payments down and finding that I have no money at the end of the month

Options

Initially I was going switch to BOI for 3 or 5 year fixed and they have offered be 2.8% Fixed with cashback 3% and (2% & 1% after 5 years - €10,710)

• (I badly needed the cash bank to finish the work in my house so I thought I only looked at banks offering cashback)

However
Unexpectedly I have also some into some money circa €35 k which I can now use towards finishing the house so now I am wondering if I better to look at other banks offering such as Ulster Bank / KBC who don’t offer cash back but who have lower rates

• Should put some of the savings I now have to reduce mortgage ?? However I have no other savings and 3 small children so I don’t think good idea .

Current Mortgage as follows 2 Loans with PTSB
Current Value of House - €575,000 / Outstanding Mortgage approx. €357,000
Current Mortgage as follows 2 Loans with PTSB with differing terms


Loan 1
211,000 @ term 19 Years
2.68 % Tracker currently Product is + 2.68 above the ECB rate


Loan 2
145,000 @ 3.7 % SV Rate @ 28 Years


- What other options should I consider ? I have been going direct with BOI but should I now go to KBC / ulster Bank would their offerings be better .

Need advise to get things straight in my head . Thanks

 

[Brendan Burgess]

First look at the average rate:
€211k @2.68% = 565
€[email protected]% = 535
€356K 1101

So the average rate is 3.1%

€357/€575k gives an LTV of 62%

Fixing with Bank of Ireland will be 2.8 %, so a saving in interest and you will get the 2% cash back or €7,000, so that is a better deal.

Switching to Ulster at 2.3% would be 0.5% cheaper than BoI so would save you €1,800 a year compared to Bank of Ireland. You would get €1,500 costs up front.
So you save €1,800 a year in exchange for €5,500 up front.

Looks like Bank of Ireland is a better deal.

 

[Brendan Burgess]

I want to move from PTSB as my mortgage payments are high @ €1850 and if the ECB tracker rate increases by mortgage will increase upwards and I already am finding it tough each month .

There is not much risk of an increase in the ECB rate in the immediate future. It's a risk, but not significant.

It probably will be higher after two years.

The tracker has some value. If ECB rates rise by 1%, ptsb will increase your mortgage rate by 1%. There is risk that other lenders will increase the rate by more than 1%.

As you are worried about your finances, maybe you need the comfort of a longer fix, in which case, you could go for the Bank of Ireland 5 year fixed rate of 2.8%.

• You get 2% cash back immediately.
  
• If mortgage rates fall further, then you may be able to break out of the fixed rate with a small penalty.
  
• If you stay the 5 years, you get a further 1% cash back.

Brendan

 

[Keengardener1]

Thanks Brendan - I guess BOI looks like a good 5 year option of I wants stability for next 5 years & the rate better than the combined PTSB rate .