# Move from Fixed Rate to Variable. I'm such an idiot



## shoppergal (5 Mar 2009)

I'm an absolute idiot.

Posted on here last month about how delighted I was that PTSB had allowed us to switch from a fixed rate to variable with no charge. Have just been looking through the paperwork and see that when the fixed rate was due to end in September we'd have gone to a tracker of ECB + 1.10%. What a fool.

Moral of the story: if something seems too good to be true it usually is (


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## DerKaiser (6 Mar 2009)

you might have a cooling off period.

To be honest I think you'd have a good case to argue as there is no additional information now to say you'd have been better off sticking to the old rate. 

If anything the decision you made is more attractive now than before so it would be clear that you are not reacting to market conditions, merely getting round to understanding the original terms of your policy


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## NorfBank (6 Mar 2009)

shoppergal said:


> I'm an absolute idiot.
> 
> Posted on here last month about how delighted I was that PTSB had allowed us to switch from a fixed rate to variable with no charge. Have just been looking through the paperwork and see that when the fixed rate was due to end in September we'd have gone to a tracker of ECB + 1.10%. What a fool.
> 
> Moral of the story: if something seems too good to be true it usually is (



That is so sneaky. You would think the bank would explain the repercussions to you especially after you bailed them out, I know the client should be aware but this just stinks. Moral of the story : Don't trust banks.

Very annoyed at this, if I as a broker had given such advice to a client, I would quite rightly find a complaint from the client on my doorstep and would probably be dragged across the coals by the Ombudsman. A bank does it and will probably get away with it. Shoppergal, why not lodge a complaint. Seriously.

Rant over.


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## Bronte (6 Mar 2009)

We don't know what the ECB will be in September, I know the trend is down but not so long ago it was up.  We also do not know how large the mortgage is nor how high the interest rate so the OP could be making a substantial saving coming from a fixed to a variable currently and she gets at least 7 months of this.   

Norbank, you make me laugh, the bank will only do what's good for the bank not for those pesky customers.  Call in the regulator he'll sort it out, no he'll sort out you the small broker but he'll do nothing to the banks............ It's not as if the regulator is on the side of the customer now is it.


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## NorfBank (6 Mar 2009)

Bronte said:


> Norbank, you make me laugh, the bank will only do what's good for the bank not for those pesky customers.  Call in the regulator he'll sort it out, no he'll sort out you the small broker but he'll do nothing to the banks............ It's not as if the regulator is on the side of the customer now is it.



If I can make someone laugh in these dark days, then I'm a happy camper.

I know what you're saying though Bronte, we as brokers live everyday in fear of the Regulator and hamstrung by compliace but the banks poke the Regulator in they eye, pull down his trousers and nothing happens.


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## moneyhoney (6 Mar 2009)

Bronte said:


> Norbank, you make me laugh, the bank will only do what's good for the bank not for those pesky customers.  Call in the regulator he'll sort it out, no he'll sort out you the small broker but he'll do nothing to the banks............ It's not as if the regulator is on the side of the customer now is it.



If the OP wants to make a complaint (as Norbank pointed out) - he sould complain to the Ombudsman, not the Regulator. No point complaining to Regulator as they don't deal with complaints from consumers.


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## NorfBank (6 Mar 2009)

Complain to bank first as Ombudsman will not hear a direct complaint.
If not satisfied by banks response then you can take it to the Ombudsman.
Then hopefully you will get your tracker reinstated! Hopefully.


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## CCOVICH (6 Mar 2009)

Hang on-was the OP advised/encouraged by ptsb to switch or did they ask to switch and were merely facilitated?


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## NorfBank (6 Mar 2009)

The fact that the breakage penalty fee was waived is surely proof of encouragement  by PTSB.

Their main goal was to get the OP off the tracker rate not to facilitate her move to a variable rate.


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## DerKaiser (6 Mar 2009)

CCOVICH said:


> Hang on-was the OP advised/encouraged by ptsb to switch or did they ask to switch and were merely facilitated?


 
I really think the OP has a very solid case to get back on the orginal deal.

It's clearly not a market condition related U-Turn as the variable rate has come down.

There's generally a cooling off period so that people have time to review their decision in the event they rushed into it.

I'd suggest the OP asks the bank to reverse the decision before going to the ombudsman as there should be a good chance they'll accommodate the request to revert back to the original deal


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## twofor1 (6 Mar 2009)

NorfBank said:


> The fact that the breakage penalty fee was waived is surely proof of encouragement by PTSB.


 
Could this be the reason the breakage penalty fee was waived ?

http://www.irishtimes.com/newspaper/finance/2009/0228/1224241990700.html


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## Petal (6 Mar 2009)

When I contacted PTSB about breaking out of my fixed rate they also offered to let me go on a variable without a penalty. Thankfully (!) I thought about asking if I'd fall back on the tracker if I stick it out, and they confirmed same - and it's in my agreement, but they did not volunteer this information right away - can't say I blame them, if I was a bank I'd try and get as many people off trackers as possible...
OP, best to contact them, explain that this was not made clear to you and that you want to reverse your decision.


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## jhegarty (6 Mar 2009)

NorfBank said:


> The fact that the breakage penalty fee was waived is surely proof of encouragement  by PTSB.
> 
> Their main goal was to get the OP off the tracker rate not to facilitate her move to a variable rate.




Since when does the bank have to do what's in your best interest ?


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## shoppergal (7 Mar 2009)

Thanks everyone for the feedback,

To be honest I hadn't been thinking of getting back onto the bank to change back, was putting it down to my own stupidity.

A bit unsure now what to do, reason for wanting to change to variable is that OH is currently unemployed and we were really struggling with the monthly payments.

Fixed rate was 5.25% which was €997 and with the last rate drop we'll be down to 3.65% or €837 which is a difference of €160 a month which will make a big difference especially if there are serious tax changes in budget. 

However if ECB rate goes down again to 1% we'd have been going to 2.10% in September which is €706 which would be €80 less per month than if we were still on the variable(and presuming PTSB pass on the next rate cut)

Oh what to do, should I try and appeal it and do without the extra €160 a month until September. Or just stay as I am and be glad of the extra money. Can anyone advise?


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## Kine (9 Mar 2009)

LDFerguson said:


> No. Depending on when you took out your mortgage, some fixed rates offered a guaranteed tracker rate to fall back on; others didn't.


 
I recently checked my doecumentation and it said (pretty much)

"Fixed at 5.29% until November 2009 and ECB+1.05 therafter."

Words to that effect anyway. I presume that means I come off onto a tracker when I finish?


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