What is the story with PTSB?

E

eok56

Registered User
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23
I'm a bit slow to all this but could someone please explain what is going on with PTSB at the moment in the news??
I have a mortgage with them, What are the implications if they go to the ground for someone like me with a mortgage with them?
 
PTSB would come under state control. Hopefully mortgage interest rates would fall into line with all the other banks under state control.
 
tenchi-ghost said:
PTSB would come under state control. Hopefully mortgage interest rates would fall into line with all the other banks under state control.
Click to expand...

PTSB have been nationalised over a year ago - interest rates certainly have not dropped to a par with AIB who are also under state control. The Government have been turning a blind eye to PTSB hard pressed borrowers - PTSB according to the Government can charge what they like.

angela59
 
With current talks between the PTSB and the Government hopefully the trackers will be taken off PTSB's books and the Government as part of the agreement will make them give the variable holders a better rate.
 
What is the reason given for the higher rate? Normally the higher rate would suggest a higher risk meaning perhaps sub-prime lending perhaps??
 
No, it's just because they can get away with it and there's no competition in the banking industry.

PTSB have a problem with their reserves.. they need more deposits and less loans. Their solution is to give a punitive loan rate, while a ridiculously high deposit rate of interest (over 3% when the ECB rate is only 1%)

The Irish banking system in dysfunctional and it's because of the behaviour of banks like PTSB.

The government is failing spectacularly in ensuring a functioning banking sector.
 
From page 9 of the PTSB annual report issued this week, it mentions how
by increasing their SVR rate, it has helped improve the banks overall margin, which just shows they have no problem screwing their mortgage holders one bit.

"Net interest income for the period, before the cost of
the ELG scheme, was €426 million (2010: €402
million), reflecting an increase in the reported net
interest margin (“NIM”)​
​
​
​
1 0.96% (2010: 0.86%). The
margin benefited from the increases in standard
variable mortgage rates offset by the rising cost of​

both deposit and term funding."
 
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