# ptsb - why am I paying 3.25%?



## ella (19 Mar 2017)

Letter of Approval- Particulars of Mortgage Loan
Loan Amount €250.000.00
Interest Rate 4.89
L T V 58%
2 year Fixed new Business Home Loan
Period of Agreement 20 Years
Number of Instalments 240
Cost of this credit 138.538.02
APR 4.9%
On expiry of fixed rate period and without affecting the entitlement of the applicant to apply at any time to fix the rate for a further period (if available)the interest rate applicable to the loan will be the then current permenent tsb tracker Mortgage rate .
was put on 3.25+ ECB.
Can the tracker rate be worked out from all of the above


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## Brendan Burgess (19 Mar 2017)

It all depends on the date your two year period expired. 

I presume it was after 31 August 2009? 

Brendan


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## ella (19 Mar 2017)

Fixed period expired may 2010


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## Brendan Burgess (20 Mar 2017)

May 2010 is after August 2009, so you are on the right rate. 

Some though dispute ptsb's right to set the rate at 3.25%

Brendan


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## ella (20 Mar 2017)

Why is it showing cost of  the creidt ?


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## Brendan Burgess (20 Mar 2017)

Because the Consumer Protection Code (and now the EU Mortgage Credit Directive) required lenders to publish this meaningless figure. 

Brendan


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## Brendan Burgess (20 Mar 2017)

mister32 said:


> The borrower needs to see what was ecb rate at time of drawdown



I don't see how it's relevant. 



ella said:


> the interest rate applicable to the loan will be the then current permenent tsb tracker Mortgage rate .



So the then current rate when the fixed rate expired was 3.25%.

Brendan


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## ella (20 Mar 2017)

My point was the rate has to be set from the draw down of funds. How else could the bank calculate the cost of credit


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## Brendan Burgess (20 Mar 2017)

Discussed at length in the other thread. 

Brendan


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## peemac (20 Mar 2017)

ella said:


> My point was the rate has to be set from the draw down of funds. How else could the bank calculate the cost of credit


They have to give total cost of credit on all loans. Same with apr.
The problem for mortgages is they have to assume rate is the same for the life of the loan as on the day they give the quotation.


Great for fixed rate car loans, but should be ignored for loans that rates can move during the life of the loan.
In your example,  if the rate stayed at 4.9% for 240 months, the cost of credit would be the amount quoted.


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## MJ2020 (6 Feb 2020)

Brendan Burgess said:


> May 2010 is after August 2009, so you are on the right rate.
> 
> Some though dispute ptsb's right to set the rate at 3.25%
> 
> Brendan


I'm one of those on the ECB + 3.25%. Has there been any developments on this?


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