PTSB offer of MVR on split mortgage

J

james-jones

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Hi, I have a mortgage with PTSB which it is currently split.

154000 is the main mortgage that we pay capital and interest on. We have 240 monthly repayments remaining.

80000 is warehoused that we do not pay interest on but will be fully repaid on the mortgage maturity date

The PTSB sent us a letter inviting us to switch to the MVR Rate, listing 154000 as the current balance outstanding. We completed the application form and sent it back with the house valuation, which is valued at 200000. When I used their samples they supplied in the letter and their on-line calculator, I calculated that the interest rate would drop from 4.5 to 4.0

PTSB replied back to us to say that they will change the interest rate from 4.5 to 4.3. When I question this with them, they could not give me a straight answer as I was expecting the rate to drop to 4.0 as per the samples they supplied and using their on-line calculator. When I asked to speak to a supervisor, they came back to me and said that although my current balance outstanding is 154000, they calculated the MVR rate at 4.3 by combining the outstanding balance of 154000 and the 800000 that is warehoused.

I queried this with them as it was not specified in the letter of application nor was it mentioned on their web site for MVR. They said it is in the terms and conditions on their web site, but I cannot find it in the terms and conditions.

Has anyone else experienced this and if so where is it listed in the terms and conditions that they have on-line regarding MVR for split mortgage.



Thanks
 
Hold on a second here.

You have a mortgage of €234k on a house worth €200k and you want a rate based on a Loan to Value of less than 80%.

You are paying no interest at all on €80,000 of your mortgage.

ptsb should simply tell you to sell the house and repay the loan in full.

Brendan
 
My question is: Where in the terms and conditions regarding MVR, is it listed about split mortgage’s, as it is not listed on their MVR switching letter.

If they state that the MVR is calculated on 154000, then this is misleading.
 
james-jones said:
BTW, do you work for PTSB, if not you should as you come across as right unhelpful pig
Click to expand...

Classy. :cool:

You're looking for free advice and think it's ok to abuse people that respond to you?

The bottom line is that you have an LTV of over 115% - it's not less than 80%.

You already have a great deal with a long term, interest free loan of €80k that's largely being funded by the higher mortgage rates paid by other PTSB borrowers.
 
Exactly, I am looking for advice not abuse as what your reply was.

However, this still does not answer my question. When PTSB calculate the offer of an MVR rate, do they calculate it by combining the value of the main mortgage (154000) and the split (80000) because this information is not listed anywhere.
 
james-jones said:
However, this still does not answer my question. When PTSB calculate the offer of an MVR rate, do they calculate it by combining the value of the main mortgage (154000) and the split (80000) because this information is not listed anywhere.
Click to expand...
Of course obviously! OP you have no cause for complaint here. LTV is based on total outstanding balance against property value (warehouse element is not relevant to this calculation).
 
The 80,000 that is warehoused is still part of your mortgage and is still owed to the bank, so makes sense that it should form part of the calculations.
 
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