No penalty/break fees to Overpay PTSB (UB) Fixed rate mortgage?

I did a small transfer into my mortgage as a test. In the mobile app.

The 'remaining balance' decreased by the amount of the transfer. The 'arrears/prepayment' field stayed at 0. And so far the next payment amount has not changed.

I may not be a perfect test case of overpaying a fixed mortgage penalty free, as my redemption letter arrived and it indicates there would be no current penalty for paying off my mortgage early. (Probably because I fixed at a low rate)
 
SPC100 said:
I did a small transfer into my mortgage as a test. In the mobile app.

The 'remaining balance' decreased by the amount of the transfer. The 'arrears/prepayment' field stayed at 0. And so far the next payment amount has not changed.

I may not be a perfect test case of overpaying a fixed mortgage penalty free, as my redemption letter arrived and it indicates there would be no current penalty for paying off my mortgage early. (Probably because I fixed at a low rate)
Click to expand...

Did they set up a new account for the credits to be transferred to or did you transfer direct to the mortgage account?
 
No, I sent it to their supplied IBAN, with a reference of my existing mortgage account number.
 
I got some further clarifications from an agent on a phone call;

When you send the money, without filling out a form signalling your intent, it acts "as credit" i.e. by default your monthly payments don't change, and the term is reduced. I understand, the principal is reduced, and the annual interest added to your account would hence be lower, and more of your monthly pay is actually going against the principal, resulting in a shorter term. In "credit" mode, if you missed a direct debit, it would be paid from this credit, or if you applied for a payment holiday it would be paid from this credit.

*BUT* if you want to reduce your monthly payments, you must fill out the overpayment form, and specify to use the credit to reduce payments, but in this case, you no longer have 'credit' on your accout, so you can no longer use the overpayment for a future holiday. I was surprised by this lack of flexibility, but have not yet re-confirmed with another call.
 
SPC100 said:
No, I sent it to their supplied IBAN, with a reference of my existing mortgage account number.
Click to expand...
Did you set up the mortgage IBAN as a payee?

I assume you could set up a standing order from your current a/c to the mortgage IBAN.
 
Hi Just got a letter from PTSB that my mortgage rate will switch to 4.4% variable from the 30th June when my fixed rate of 2.2% ends. The rates on this thread show a rate of 3.8% Variable available? Is this out of date information.

My home is A2 rated and I owe €82000, the value of the property is €600000.
 
Just to confirm, I did a large overpayment filled out the overpayment form, and now have a reduced monthly mortgage payment!
 
TRS30 said:
Did you set up the mortgage IBAN as a payee?

I assume you could set up a standing order from your current a/c to the mortgage IBAN.
Click to expand...
Yes. I setup as payee. With my mortgage account in the payment reference.

I think you could do a standing order to build up your credit
 
I did a transfer to my actual mortgage IBAN directly and it’s sitting as an overpayment while the mortgage balance is unaffected. The agent confirms to be that the balances are netted for interest purposes.

Separately, I broke a 3 year rate that was fixed last year to go into a new 3 year on the new rates. There was a small breakage charge but I am better off within months with the saving on the new rate so a no brainer really.
 
Folks

Can we clarify this?

Is ptsb allowing capital repayments on fixed rates without a penalty?

It seems clear to me that they are not.

1719482363615.png

1719482429117.png
 
If you took out a mortgage 5 years ago, and make a capital repayment now, there probably will not be a penalty because ECB rates have risen.

However, if you take out a mortgage today when the ECB rate is 4.25% and if ECB rates fall as they are expected to, then you could face a large early repayment fee.

With Avant any such early repayment fee is capped at 2% I think.

Brendan
 
SPC100 said:
I got some further clarifications from an agent on a phone call;

When you send the money, without filling out a form signalling your intent, it acts "as credit" i.e. by default your monthly payments don't change, and the term is reduced. I understand, the principal is reduced, and the annual interest added to your account would hence be lower, and more of your monthly pay is actually going against the principal, resulting in a shorter term. In "credit" mode, if you missed a direct debit, it would be paid from this credit, or if you applied for a payment holiday it would be paid from this credit.

*BUT* if you want to reduce your monthly payments, you must fill out the overpayment form, and specify to use the credit to reduce payments, but in this case, you no longer have 'credit' on your accout, so you can no longer use the overpayment for a future holiday. I was surprised by this lack of flexibility, but have not yet re-confirmed with another call.
Click to expand...
I'm guessing that would apply to regular overpayments also? I have a UB mortgage that was transferred over. We always pay the extra 10% allowed each month. I can see from my yearly statement the overpayment figure is sitting in a credit account. From what I can see from my details, the mortgage amount & term are the same though, they don't change.
From the time of moving across & clarifying a few years ago now, I was told the credit sits in an 'account' until my fixed term ends, then I can transfer it over, where it will then obviously effect the term/amount remaining.
 
Last edited:
You must log in or register to reply here.
Back
Top