Permanent TSB Issues?

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faketales

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I have seen posts in here stating to avoid PTSB but they offering 2% upfront cash back and 2% monthly cash back. There interest rate is 0.2% higher than an alternative but the cash back more that makes up for the slightly larger payments over 3 or 5 years.

I understand they also allow you to overpay considerable which we may be in a position to do but wouldn't want to commit to a shorter mortgage.

Why should I avoid?
 
My partner and I have gone Sale Agreed as of today and we're working with PTSB for said reasons you've mentioned. The CB is €10k which significantly outdoes the extra interest we are looking at in the first 3 years.

I only intend on being with them for the 3 years so the longterm customer issues which have been mentioned on older threads don't worry me too much.

Awaiting formal loan offer in about 2 weeks fingers crossed.
 
You are making the assumption that you can switch in 3 years.
You are making the assumption that you will switch in 3 years.

If you can't or if you don't get around to it as experience shows that most won't, ptsb will exploit you by charging you the highest rates for existing customers in the market.

This is not like your electricity where you can switch with a phone call. It's easy now to say "I will switch in 3 years" but it's much more difficult to actually get to do it.

Brendan
 
I get what you're saying Brendan. Nobody can predict the future re dependents, job scenario etc, but there is a strong intention to.
 
What are the reasons why I could not switch?

One of us have lost a job / earning less?

Beyond that what are the costs involved?

I'm someone who is happy to switch electric supplier, insurance etc regularly.

Talking to some friends who went with KBC or UB before because of their long term rates etc. Yet a few months later there is no certainly.

It seems like it almost impossible to predict 3/5 years in advance. To reject about 4k in my case because of assumption seems like a lot of money to put in a low confidence data.
 
faketales said:
What are the reasons why I could not switch?
Click to expand...

Personal issues relating to yourselves
  • You lose your job
  • Your income is reduced
  • You change your job and are not in the new job 12 months
  • You set up a new business and don't have three years' accounts yet
  • You separate from your spouse
  • You have children so your expenditure is higher
  • You missed a credit card payment by mistake and now have an impaired credit record
Market issues
  • Lending criteria change
  • New bank doesn't take switchers
  • Banks have stopped lending
Believe me, permanent tsb has a lot of hostages.

faketales said:
Beyond that what are the costs involved?
Click to expand...

About €1,500 and the new bank might not pay that.

There are comparatively good long-term fixed rates available at the moment from Finance Ireland and Avant. They seem like a much better option than going to a dreadful lender with the intention of switching.
 
Brendan Burgess said:
Personal issues relating to yourselves
  • You lose your job
  • Your income is reduced
  • You change your job and are not in the new job 12 months
  • You set up a new business and don't have three years' accounts yet
  • You separate from your spouse
  • You have children so your expenditure is higher
  • You missed a credit card payment by mistake and now have an impaired credit record
Market issues
  • Lending criteria change
  • New bank doesn't take switchers
  • Banks have stopped lending
Believe me, permanent tsb has a lot of hostages.



About €1,500 and the new bank might not pay that.

There are comparatively good long-term fixed rates available at the moment from Finance Ireland and Avant. They seem like a much better option than going to a dreadful lender with the intention of switching.
Click to expand...

Thanks for response. Would negative equity also be a reason?

I still see the ability to over pay the mortgage with PTSB as a huge plus. We would be in a position to put €500+ extra in a month (for a while anyway). As far as I can see this is not available or to the same extent with other mortgages.

Am I over valuing this feature?
 
faketales said:
I still see the ability to over pay the mortgage with PTSB as a huge plus.
Click to expand...

You can overpay any mortgage issued in Ireland. At any time and by any amount.

If it's a fixed rate, you may have to pay a penalty.

One thing which permanent tsb does which is useful is that the overpayments are treated as payments in advance. So if you have overpaid by €24,000 and your repayment is €2,000 a month, you can take a 12 month payment break.

This could be a very useful feature. If for example, you were 5 years away from facing college fees, you could overpay your mortgage now and take a break in five years.

It's discussed at length here:

Key Post - How overpaying a ptsb mortgage works

I was vaguely aware of this but it was brought to my attention this morning by someone who is choosing ptsb because of this facility. https://www.permanenttsb.ie/globalassets/pdf-documents/mortgages/mortgage-arrears/bmk3625..-flexible-mortgage-options-aug-19..-1.05mb.pdf In simple terms, if...
www.askaboutmoney.com
 
Hi,

I believe PTSB also now offer a 4yr fixed rate at 2.25% with no cashback. Their website has 2.25% for 80-90% LTVs which is slightly different from the linked article below.

I think this now makes PTSB a little more competitive and if you are stuck with PTSB as your only lending option it gives you an additional option of not having to take a Cashback offer.

www.rte.ie

PTSB's new 4-year fixed rate mortgage rate of 2.25%

Permanent TSB has launched a new four-year fixed rate mortgage product for new customers with a rate starting at 2.25%.
www.rte.ie www.rte.ie
 
They should give you a page offering you all the options including the lower rate with no cashback and the "full cost" plus whatever the one off cash back is. (There is then 2% back on the monthly til end of 2026 or something like that.)
I didn't get the offer of 2.25 without cashback but they did offer me 2.55%. I suspect it was because I'm borrowing 81% rather than <80% LTV.
It was interesting to note that the overall amount payable was lower for 7 year fixed with cashback. Really there needs be some kind of consumer calculator for working out the net impact of cashback and comparison with lower rates/non cashback. Its hugely confusing for consumers.
That said the upfront costs of buying are a large chunk on top of your deposit so I think most people are reassured by the thought of having something in the bank immediate after buying (the thought of having zero savings after saving aggressively for 11 years was daunting)
 
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