And Page 11 complicates it further:
STANDARD INFORMATION REGARDING MORTGAGE OPTIONS
The information set out below is intended to assist you when deciding on mortgage options. Further independent information is available on the National Consumer Agency website
www.nca.ie.
We strongly suggest you consult your financial advisor before making a decision regarding mortgage options.
To discuss your options with permanent tsb please contact your local branch or Freephone 1800 855 830 (or +353 1
215 1343 if you are calling from abroad) to arrange an appointment (please note that advice cannot be given during the telephone call).
Variable rates
Variable rates offer most flexibility. They allow you to increase your repayments, use a lump sum to pay off all or part of your mortgage or re-mortgage without having to pay any fixed interest rate breakage However, because variable rates can rise and fall, your mortgage repayments can go up or down during the term of your loan.
The Loan-to value (LTV) rate is a variable rate whereby the rate is related to the amount of your mortgage compared to the value of your home. The LTV rate is a variable rate not linked to the ECB rate, therefore your mortgage repayments can go up or down during the term of your loan at the discretion of the lender.
Tracker rates
This is set at a fixed percentage or margin above the ECB rate as set out in your mortgage contract. The ECB rate may vary from time to time but the percentage or margin does not change. The ECB rate may be increased or reduced from time to time by the ECB and we will apply all increases or decreases within one month from the date of the announcement by the ECB as the effective date. If we cannot use the ECB rate for this loan, we will use another reference rate for calculation that is fair and reasonable. Tracker rates provide the benefit of a guaranteed link to the ECB rate which continues over the term of your mortgage unless you decide to switch to another mortgage rate option. You may increase your repayments or use a lump sum to pay off all or part of your mortgage without having to pay any fixed interest rate breakage fee. However because the ECB rate can rise and fall your mortgage repayments can go up and down during the term of the loan.
Warning: If you choose to remain on your current interest rate and not to avail of our offer of a tracker product, you will not be contractually entitled to avail of a tracker interest rate in the future
I Warning: The cost of your monthly repayments may increase
Fixed interest rates
With a fixed interest rate mortgage, your interest rate and monthly repayments are fixed for a set time as agreed between the lender and borrower. Although a fixed interest rate means your repayments cannot increase for a set period of time, your repayments will not fall during the fixed interest rate period. As a result, you could miss out on lower interest rates and lower repayments. Fixed interest rates may cost more over the long run but they offer peace of mind as you know your repayments will not rise during the fixed interest rate period.
During the fixed interest rate period, you will face breakage fees if you want to switch lender, move to a variable rate, re-mortgage or pay off all or part of your mortgage. Also, you cannot usually pay more each month than your standard repayment. You should be aware of these conditions before you sign up to or decide to exit a fixed-rate contract.
At the end of a fixed interest rate term, you will receive an options letter from the lender outlining the mortgage rate options then available. You should respond to this options letter unless you are satisfied with the default option to be applied by permanent tsb in respect of your mortgage in the event of non-receipt of a signed option instruction. The default option will be indicated in the list of product options attached to the options letter.