PTSB have witdrawn all fixed term rates to current customers

M

Mr64

Guest
Currently on a variable of 4.19% with PTSB and just tried to fix there, given the notice of a rate rise. Have just been told all fixed rates have been withdrawn pending a review. Is this normal? If I was a new customer would I be told there were no fixed rate offers for me? If the variable rate hasnt actually changed yet why could they not offer me a fixed rate to consider? Will they issue new higher fixed term rates at the same time as the new variable rate?
 
News to me but the only people that can answer your questions are the folks at PTSB.

Ring 'em back and let us know?!
 
I just got same line from them. Asked is it because of 1% increase and he said any increase is pure speculation. Sound well thats 180 euro a month out of my wages extra a month. Didn't need that!
 
Yes my LTV is over 50%. My concern naturally is that after this "freeze" on fixed rate offers is lifted, the new fixed rates will be, more than likely, higher than they were yesterday. (or maybe im being somewhat negative and in fact they intend to lower them and want to hold off on the surprise) So although the new rate isnt set yet I am frozen out of fixing until such time as the rate has risen. Which, of course, is of absoloutley NO use to me!!!!!!!!
 
Just checked with them there, Im an existing customer with an LTV of greater than 50%. They said that ordinarily they would offer fixed rates to existing customers like me, just not for the next 10 days or so...while the "freeze"is ongoing
 
What is this 'freeze' all about? Whats their justification for it?

In the current climate, after the banks have been bailed out and deposits guaranteed etc (not sure if PTSB were included in either though) surely its time for the Financial regulater to have some say in Banks business in relation to mortgages.

I know they have started to impose stricter measures when issuing mortgages but they are effectively holding mortgage holders to ransom by doing above.

Is it time the regulator stepped in? Would it be possible to have the regulator approve or reject increases/decreases in rates (that are unrelated to ECB movements)?

Energy regulator does this for Gas and Electricity suppliers. Taxi regulator for Taxis(i know its not exactly the same but surely something can be done).

I know there is risk in taking out a mortgage. Everyone should be aware of the risks. But most people do their mortgage sums off the back of predicting movement of 2-3% max.

Given wage cuts, increased taxes, and a continued ridiculous cost of living,lots of people who are genuinely trying to cope and did not take the Mickey with property (developers, multiple investment properties etc) are facing the reality of not being able to afford their own homes.

While I do think its important that the banks need to be profitable, something has to be done about the random rate increases. Can they not limit it to once a year or twice a year max or limit the percentage increase?
 
OK so at this stage we all know what the freeze was all about. PTSB have just axed all fixed rates and will not offer them to existing variable holders or people taking out new mortgages. People on existing fixed rates are ok. My question is - I am on a fixed rate mortgage at present, what happens when my fixed rate expires? Will I be offered variable only and have no choice but to take it? Anyone
 
rustbucket said:
What is this 'freeze' all about? Whats their justification for it?

In the current climate, after the banks have been bailed out and deposits guaranteed etc (not sure if PTSB were included in either though) surely its time for the Financial regulater to have some say in Banks business in relation to mortgages.

I know they have started to impose stricter measures when issuing mortgages but they are effectively holding mortgage holders to ransom by doing above.

Is it time the regulator stepped in? Would it be possible to have the regulator approve or reject increases/decreases in rates (that are unrelated to ECB movements)?
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PTSB are not part of bank bailout. Really in terms of regulation it's a case of horse already bolted. The banks are not increasing interest rates purely to screw borrowers, they are doing so because they have to. Their cost of borrowing is higher than the price they are giving it to customers at. If they regulator tried to force a lower interest rate it would bankrupt the bank and leave the taxpayer yet another bank to bailout. In the case of the already bailed out banks the bailout would be greater. So that's that choice, higher interest rates or higher taxes to pay for bigger bailout.
 
just spoke to bank. 1% increase confirmed. no option to fix. oh to have done something about it a couple of weeks ago.

so frustrated - all I've been reading about is how people should fix - but i kept putting it off.

Thats me included as a statistic from next month. new tax combined with 1% increase. Where am i going to find 500 euro a month?
 
i fixed from variable 4.65% to 5yr fixed 5.75% on monday. I shud'nt feel lucky at this rate but i fear for people on svr. ecb rate hike is next..
 
robd said:
PTSB are not part of bank bailout. Really in terms of regulation it's a case of horse already bolted. The banks are not increasing interest rates purely to screw borrowers, they are doing so because they have to. Their cost of borrowing is higher than the price they are giving it to customers at. If they regulator tried to force a lower interest rate it would bankrupt the bank and leave the taxpayer yet another bank to bailout. In the case of the already bailed out banks the bailout would be greater. So that's that choice, higher interest rates or higher taxes to pay for bigger bailout.
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So essentially the mortgage holder is now being held to ransom. While I acknowledge the risks involved, in the case of PTSB, they now only offer Variable rate. They are increasing this whenever they like, and will also increase it when the ECB rate goes up. Whats to say that it wont eventually go up to 7, 8, 9, 10%?

The reality is, that I doubt ANYBODY Could afford their Mortgage repayments if the rates went that high. I would be very surprised if anyone had done their budget calculations on rates increasing by more than 2%.

Coupled with the tax increase, wage cuts and everything else its a very bitter pill to swallow.

A lot of mortage holders now dont even have the option of changine bank as they are in negative equity. How is that right, that they now have No Choice whatsoever?
 
rustbucket said:
So essentially the mortgage holder is now being held to ransom. While I acknowledge the risks involved, in the case of PTSB, they now only offer Variable rate. They are increasing this whenever they like, and will also increase it when the ECB rate goes up. Whats to say that it wont eventually go up to 7, 8, 9, 10%?

The reality is, that I doubt ANYBODY Could afford their Mortgage repayments if the rates went that high. I would be very surprised if anyone had done their budget calculations on rates increasing by more than 2%.

Coupled with the tax increase, wage cuts and everything else its a very bitter pill to swallow.

A lot of mortage holders now dont even have the option of changine bank as they are in negative equity. How is that right, that they now have No Choice whatsoever?
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Nothing, it likely will hit 7-8% perhaps more, unfortunately.

Tracker rates were offered at a time when banks had access to funds at cheap rates and thought that this was always going to be this way due to Ireland now being in the Euro. They were a new product that was never before and will likely never again be offered to customers. They got this one very wrong and it has turned out to be an absolutely fantastic deal for customers on one. Before tracker rates it was always variable whereby they put up rates as needed dependent on market conditions. Now it's the same again.

Surely you see the flip side of this.

Yes its going to be hard on mortgage holders, yes some of them will lose their homes, but it's equally hard on banks. They're all likely to have massive redundancy programmes this year to try to balance costs. No-one can expect banks to lend money out of less than they borrow it for.

These are bad times all round.
 
Deisce said:
I just got same line from them. Asked is it because of 1% increase and he said any increase is pure speculation. Sound well thats 180 euro a month out of my wages extra a month. Didn't need that!
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The press are saying the variable rate is 4.19% But I came off my fixed two years ago to a 4.65%. Mine is going up to 5.65%. Thats over 200 a month to me. Unreal.
 
Deisce said:
The press are saying the variable rate is 4.19% But I came off my fixed two years ago to a 4.65%. Mine is going up to 5.65%. Thats over 200 a month to me. Unreal.
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I hate that. Is the 4.19% for new business? Or LTV<50%?
 
corklad said:
I hate that. Is the 4.19% for new business? Or LTV<50%?
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No they told me it was 4.19% for people who went on to variable some time ago and my rate stands coz I went off fixed 2 years ago. Of course I asked them last year (when the other increase was on the cards) was there another variable rate and the woman on the phone said no it was the press that were wrong.

Also told me it was just a small amount of customers that are on my variable. That is very comforting.
 
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