What to expect at end of discounted tracker period



This is my first post.

I have a Permament TSB mortgage which I started with them this year (but got approval last year). it was for a self build house on land that i already owned so the LTV is about 40%.

I have a discounted tracker of ECB +.6%. All of the talk of recession, ECB rates etc has had me more focussed on my mortgage than previously so I just read the fine print about what happens after the discount period ends (April 2009). It says that at the end of the discount period the rate will be the "then current permanent tsb tracker mortgage rate appropriate to the loan".

Looking back now I realise that I should have argued for a specific tracker percentage for when the discount period ends, but back when I was organising the mortgage I was more focussed on negotiating a building contract and took my eye off that ball. Additionally i trusted the mortgage broker to spot all of these things because he was an acquaintance but I had too much faith in him.

Does anyone have any advice on what I should do in this situation?
Should I just wait and see or should I contact the bank to negotiate to should I look at switching to another mortgage provider that might have a more competitive tracker rate?


Frequent Poster
I think that PTSB were one of the institutions that said they would no longer be offering tracker mortgages so you may be pushed to a variable rate at the end of your discount period. I'd contact them now to clarify if you will be treated differently as you are an existing customer and that they will actually offer you a tracker (if that's what you want), although the tracker they offer may be prohibitively high.

If your current tracker is less than the NIB one (http://www.nationalirishbank.ie/PersonalHomeHousingLoanTypesLoanToValue), it might be worth keeping your current rate until April 2009 and then seeing what TSB has to offer and shopping around. However, if the rate is comparable to the cheapest you can get right now (I'm only using NIB as an example as they still have trackers out there and I use them so have their website on bookmark), you might be better off switching now and locking in the tracker margin with an institution that will guarantee the margin for the term of the loan. If you leave switching to April 2009, the tracker rates available even with NIB may be at a higher margin than currently.

Good luck with it


PTSB don't currently do tracker mortgages for new customers (since 11th July). If they bring them back - you will go onto the rate appropriate to your LTV. If they don't bring back trackers - who knows what they will do? Probably just go onto their standard variable rate . Is it mentioned in the documentation what happens if tracker rates not in existence? Might be a good idea to call PTSB and ask for written confirmation of what type of rate you would go onto in this situation
Now the house is built - you could possibly switch to NIB and get a tracker of ECB plus 0.5%. It will cost you legal fees ( 1k or more) and there is a possibility that NIB might put up rates before you sign up for it.

edit: (I didn't see previous post while I wrote this one - so aplogies for any overlap)
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