My very poor experience with PTSB

[meepman]

I currently have a home worth approx 200k. Mortgage is 300k on a tracker of 2.25% above ecb. Currently been paying interest only for last 6 months as struggling to afford it due to increased costs,salary cuts etc, have been informed by ptsb that they will only offer another 6 months of interest only.

I want to move closer to work/amenities as fuel costs,m50 bills are as much as interest only on mortgage. Moving closer to work combined with reduction of childcare costs would just enable me to pay the full amount of mortgage as it stands.

Ptsb said Options are to move and as I am in 100k negative equity that the maximum house purchase would be approx 170-180k. But I would lose the tracker rate on the whole loan, and go onto svr of 4.35% . So my incentive to move now is zilch as I will end up paying more for the loan than I'm paying now.

I asked if I sold property what would happen with the negative equity? Reply was the negative equity would be expected to be paid back on the tracker rate and over the same term.
So, the option to sell and pay an Unsecured loan back at a tracker rate is more attractive than buying a different property. Now to me,that is wrong. If they want people to move, they have to allow the same rate to be applied as the incentive is gone.

Ptsb expressed all decisions are on case by case basis. BUT that is not true as they will not budge on the tracker issue so it is not a case by case basis but a strict PTSB POLICY.

I am not sure if these policies are well known but with all the rubbish in the press over the last few days from Ptsb stating more money being available, that is misleading the public.

Surely to kickstart the buying and selling of properties then this has to change as there is no incentive for me to move as the savings I will make with less bills will be cancelled out by the increase of mortgage payments.
Now thats what i call CATCH 22

 

[Brendan Burgess]

If they want people to move, they have to allow the same rate to be applied as the incentive is gone.

It is you who wants to move. ptsb doesn't care if you move or not.

ptsb would love you to redeem your tracker mortgage, so if moving forces you to redeem the tracker, they would be delighted.

If you sell your home, they can lend on the €200k at 4.5% while getting 3.25% on the remaining €100k.

You should look at letting your current house and renting a more suitable home closer to where you want to be.

 

[meepman]

Thanks, but the rent would barely cover the interest, so financially feel stuck as could not afford to rent and pay the remainder of loan. Another option was to park some of the loan but that is just delaying the inevitable of going into arrears.
I want to move but realistically, moving onto a higher rate for the same loan is a bad idea.

Just feel there is not much of an incentive for people in my situation.

 

[GDUFFY]

Having dealt with PTSB over the last 18 months and having been through their protracted "negotiations" and procrastinations ,meetings at the Green etc.,yadda yadda yadda I can assure you that there is no talent or creative thinkers in that nest of vipers ,full of little Hitlers and incompetents IMO.
I got what I needed in the end but only after mortgage payment strike and other tactics which helped them see the light. Sorry I cant elaborate further, and my username does not compromise my identity. Remember who owns this bank.The squeaky wheel gets the oil !

 

[Importer]

I think I would be steering you down the same path as Brendan is.

Rent your existing house out and rent another house where you "want" to be.

If you tell the bank that you really need to stay on an interest only basis on your current house "for the time being", the bank might huff and puff a bit but they are unlikely to take any action. As you said the rent will cover the interest which frees you up, to rent closer to town.

The big danger of course is that the bank will remove your tracker so you will need to be persuasive

 

[meepman]

I think I would be steering you down the same path as Brendan is.

Rent your existing house out and rent another house where you "want" to be.

If you tell the bank that you really need to stay on an interest only basis on your current house "for the time being", the bank might huff and puff a bit but they are unlikely to take any action. As you said the rent will cover the interest which frees you up, to rent closer to town.

The big danger of course is that the bank will remove your tracker so you will need to be persuasive

The bank have stated that after my 2nd 6 months interest only moratorium that I will have to look at other options such as parking debt. I don't see that as an option, I just see it as delaying the debt, no different to interest only. To rent closer to work i would be paying slightly less that the full mortgage so if I couldn't rent the house for some time It would become unaffordable. Where my house is is not in a place that is easily rented either.

I feel the only option I have is to sell, take the negative equity loan and then pay what I can afford until it expires or I do.

 

[meepman]

Is there an option for me to sell and take the neg equity loan for say 100k. And then get another loan for 100k with another bank. I could then pay back the neg equity loan at the tracker rate and the new loan at the new banks rate. Is this viable??
Because PTSB will not agree for me to pay the neg equity loan on the tracker rate. They want me to pay the new svr on the whole amount (neg equity and new property).This isn't a goer as why would I pay a higher rate than I am paying now for the same amount.
Also, the landlord option is not a long term solution for me.
I feel the banks are not giving options unless they are pressured to.

 

[Brendan Burgess]

Mortgage is 300k on a tracker of 2.25% above ecb. Currently been paying interest only for last 6 months as struggling to afford it

The situation is that you are struggling to pay the much reduced tracker interest at the moment.

How can you expect to make the full repayments on a SVR loan of the same amount?

No bank is going to lend to you.

 

[Bronte]

How much is your interest only payments

How much is capital and interest

How much will you save in petrol and other costs if you move

How much would 100K at the current tracker rate and term cost

How much is rent closer to where you want to live

 

[Bronte]

I got what I needed in the end but only after mortgage payment strike and other tactics which helped them see the light. Sorry I cant elaborate further, and my username does not compromise my identity.

Is there any possiblity you could log on with a different user name and tell us exactly how you managed to get what you wanted with the bank. It would be of benefit to the many people who are struggling with dealing with banks.

 

[Alwyn]

GDuffy I too would be very interested to hear how you persuaded these guys. I'm trying to sell a home that is in gross negative equity. I have told them that if they allow the sale go ahead I will pay the remaining NE. This of course seems to be held with suspicion. I have also been ordered to contact their valuation team and arrange a valuation (I pay for this). Would you believe I am still waiting for the valuer to contact me, all the while I have an offer on the property!

My own estate agent is also under scrutiny i.e to show proof of other offers, marketing of property undertaken etc.

 

[itsallwrong]

'I got what I needed in the end but only after mortgage payment strike and other tactics which helped them see the light'

Cough it up Gduffy - plenty of PTSB whipped customers could do with a pointer.

 

[GDUFFY]

Sorry it is a commercial unit. Apologies if I gave false hope on PPR'S . They are some shower in that place, I will be going back in after 6 months for a rate % reduction, if its not forthcoming ,they wont get another penny again !

 

[meepman]

How much is your interest only payments

How much is capital and interest

How much will you save in petrol and other costs if you move

How much would 100K at the current tracker rate and term cost

How much is rent closer to where you want to live

All monthly;

Interest only - 648
capital+interest - 1380(at the moment with mortgage relief)
Car fuel - 500
M50 toll - 80
100k at current tracker rate - approx 450
Rent closer to work(in area not using M50 toll) - 1200
Car fuel if closer to work - 100

If I rented out property for 750 max this would just about equal interest only after expenses.

If rented for 1200 closer to work, and as a family we have 2 cars, we could only have one car(reducing travel costs)
Fuel/toll costs reduced by 480 a month if living closer to work.
Also we pay 600 a month childcare as too far from family.

 

[meepman]

The situation is that you are struggling to pay the much reduced tracker interest at the moment.

How can you expect to make the full repayments on a SVR loan of the same amount?

No bank is going to lend to you.

Thanks Brendan
I have outlined more info in previous post.

We would not have to pay much childcare as closer to family help if we moved and of course fuel costs would be much less, so we could possibly save approx 800 a month.