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?
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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:
Clear your mortgage sooner than originally planned using the mortgage overpayment. Regular payments and lump sum repayments available.
Reference to PTSB breakage calculation:
Get more important information relating to Home Loan Mortgage Repayment Difficulties.
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.
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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.