Ulster Bank 10% overpayment benefit with PTSB

[ethicaback]

This is a follow up to the conversation on this thread where there was speculation on if PTSB would honor Ulster Banks 10% overpayment:

Key Post - Ulster Bank mortgage customers should fix for as long as possible before ptsb buys the mortgage and bumps up the rate

Accepting the reality that many (most?) Customers will not switch, maybe the advice should be dumbed down for most people to fix as long as they can with UB.

www.askaboutmoney.com

Attaching Ulsterbank Transfer welcome pack PDF page 6 it states:

Ulster Bank 10% Overpayment Facility
As a Permanent TSB customer you will still be able to avail of your 10%
overpayment, previously offered by Ulster Bank. Please contact our Mortgage
Operations Department to discuss this option as there are a variety of ways to
make a lump sum lodgement. Although the overpayment calculator previously
provided by Ulster Bank is no longer available, our team are on hand to support you
with calculations over the phone.

Also attached PTSB Flexible Mortgage Repayment Options pdf page 9 is the form for filing an overpayment. There's 3 options

a) To reduce my scheduled monthly repayments to allow me to pay over the original term or
(b) To reduce my original term while keeping my monthly repayments the same or lower* or
(c) To leave as credit for a future underpayment/payment holiday

Does this mean a and b are the same as Ulster Bank however they offer the 3rd option (c)

Looks like good news.

 

[Paul F]

Does this mean a and b are the same as Ulster Bank however they offer the 3rd option (c)

Kind of but technically it is as follows:

• People whose mortgage was transferred from Ulster Bank to Permanent TSB have the same overpayment options as they had with UB in addition to the overpayment options that PTSB offers to its customers

PTSB's (a) and (b) options may operate slightly differently to Ulster Bank's overpayment options – there is some uncertainly around how exactly the former are handled:

Should I fix mortgage?

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? This is what I assumed although I didn't specifically ask, apologies. The lady on the phone was difficult to...

www.askaboutmoney.com

 

[ethicaback]

I recently contacted PTSB by phone and they have an option to choose of your mortgage was transferred from Ulsterbank.

I have spoken with 2 representatives and they advised their higher ups have advised them there is no limit on overpayment amount and they only charge a early repayment charge if the mortgage is paid off in full (erc). They are not aware of any break fees when overpaying any amount less the full amount.

This appears contrary to information in their documentation., anyone else had conversations around overpayment and fees with PTSB or successfully made overpayments?



---

I searched "early repayment charge mortgage" on the PTSB website and found numerous references to early repayment charge for mortgages. I am assuming early repayment charge also incudes the break fee for overpaying lump sum or monthly overpayments.



Reference to overpayment with PTSB:

Mortgage Overpayment Options | permanent tsb

Clear your mortgage sooner than originally planned using the mortgage overpayment. Regular payments and lump sum repayments available.

www.ptsb.ie

Reference to PTSB breakage calculation:

Important Regulatory Information - Help | permanent tsb

Get more important information relating to Home Loan Mortgage Repayment Difficulties.

www.ptsb.ie

https://www.ptsb.ie/globalassets/pdf-documents/mortgages/permanent-tsb-flexible-mortgage-options.pdf

There document states there maybe charges for overpayment:
WARNING: YOU MAY HAVE TO PAY CHARGES IF YOU PAY OFF A FIXED RATE LOAN EARLY.
Where the lump-sum payment is made in respect of a fixed rate mortgage prior to the expiry of a Terms & Conditions relating to Flexible Repayment Options Section 4 – Terms, Conditions and other Important Information17 fixed interest rate period, the applicant shall pay an additional sum calculated in accordance with the conditions relating to fixed rate loans as provided in general mortgage loan approval conditions applicable to the applicant’s mortgage. (Please see important information on “Fixed Rate Loans” at the end of the terms and conditions).



Whenever (i) repayment of a loan in full or in part is made or (ii) with the agreement of permanent tsb, the loan is switched to a variable rate loan or other fixed rate loan, before expiry of the Fixed Rate Period (hereinafter called the “Early Termination”), the applicant shall, in addition to all other sums payable as a condition of and at the time of the Early Termination, pay a sum equal to the permanent tsb’s estimate of the loss (if any) arising from the Early Termination. In the calculation of the said loss, permanent tsb shall endeavour to apply in so far as it is fair and practicable. This is how the fee is calculated; C = (I-S) x R x (M-T)/12 “C” is the charge to compensate for the loss (if greater than 0), “I” is the swap/ Important Information Section 4 – Terms, Conditions and other Important Information19 Section 4 – Terms, Conditions and other Important Information market fixed interest rate for the term of the Fixed Rate Period at the date of its commencement, “S” is the swap/market interest rate for the remaining fixed period, “R” is the amount of the fixed rate loan balance paid or switched at the date of Early Termination, “M” is the Fixed Rate Period (in months) and, “T” is the time expired of the Fixed Rate Period at the date of Early Termination (in months). Here is a worked example; “I” = 5%, “S” = 3%, “R”* = €100,000, “M” = 24 months, “T” = 12 months. C = (5%-3%) x €100,000 x (24-12) / 12 So, C = 2% x €100,000 x 12 / 12, C = €2,000 *For the purposes of the above fixed rate mortgage breakage fee worked example, a fixed balance of €100,000 representing the loan balance to be paid or switched at the date of Early Termination is used for “R”. In the actual calculation of the fixed rate mortgage breakage fee payable to the Bank, a reducing loan balance approach is used to calculate “R”. This approach is used to take into account the fact that, after the switch or Early Termination, the loan balance typically reduces due to scheduled repayments for the remainder of the fixed rate period. The fee calculated using a reducing balance approach will always be lower than the fee calculated using a fixed balance approach. Please contact your local Permanent TSB branch for further information.

Our Mortgage Jargon Buster | permanent tsb

No need to break out the dictionary. Find out what we mean when we talk about stuff like equity and BER. Our Jargon Buster will keep you in the know.

www.ptsb.ie

Early repayment fee
This fee only applies to fixed rate mortgages. This is a charge, sometimes referred to as a breakage charge, incurred upon switching out of a fixed rate mortgage before the expiry of the current fixed rate period or on full or partial redemption of the loan.