Any difference between permanent tsb and ebs

Hi,

After years of penny pinching we've finally managed to get a mortgage offer off both Permanent TSB and EBS. We found a house and are now going to go through with acquiring the mortgage.

Just wondering whether anyone would like to share their experiences on permanent tsb or EBS and how they are as mortgage providers. Both have offered us discounts for our first year so it's a toss up on first year and the difference in standard variables are marginal 4.54%(EBS) as opposed to 4.45%(PTSB).

Anyone know how they're looking in terms of sustainability? I know EBS are owned by AIB who I feel have been very unfair to their customers during the recent mortgage rate hikes, but then all mortgage providers have been.

Any info greatly appreciated.

Thanks,

There would be minimal difference between them. Both messed up in the fluffy times, both are now owned by us. Both continue to be loss making.

Without our input they would be bust.{we have put 20 Billion into AIB}
From your view that does not matter. You get your Mortgage and provided you keep to its terms you are grand.

Since both are trying to return to profit, ,there is little doubt that they will increase rates at every opportunity.
Ask yourself ,Can you can afford the Mortgage should rates go up 2%.

Also be cautious when they offer you any add ons, eg life cover etc, It maybe they have changed , but both Banks in the fluffy times did not give customers anything like the customers best options.

Cool, thanks for reply. any other comments completely welcome.

There should really be little difference, initially anyway.


You asked about sustainability - PTSB has yet to receive a response on its restructuring plan from the EU, and it was initially submitted a couple of years ago. It is also the most unprofitable Irish bank (lowest Net Interest margin) and it will take the longest to restore profitability, by its own admission. Its problem here is that the majority of its balance sheet is loss-making Tracker mortgages - a much higher proportion that at the other banks. That at least leaves an element of uncertainty around its future shape.


As you said, EBS is just a part of AIB. Its issues are a little less severe than PTSB's, but it does appear to have a bit more certainty around its future - it looks like AIB and BOI are the two Irish banks that are deemed systemically important and will nbe regulated by the ECB.


Whatever happens, you will still have to repay your mortgage as agreed. What isn't as clear is what would happen if you looked to release equity/refinance, etc. at a later stage from a bank that wasn't open for new business.

So, would the fact that PTSB are in greater difficulty mean that once interest rates start to rise that they'd be more inclined to increase their rates at a quicker pace?

One thing that I don't understand, maybe someone could help - We're being told by the banks that standard variables need to keep rising because they're losing so much on trackers because ECB have such low rates. Does this mean that when ECBs rate goes up and the trackers rate goes up that the standard variable rate should go down? By this implication, would it mean that since PTSB would have more trackers(in theory they'd be in a better position as those loans rates will go up) so should have better standard variable rates?

Or is this just the same old spin we hear from the banks, using any excuse to try and suck as much money as they can out of us?

Thanks again for the replies guys, always good to get good opinion off people out there.

If/when ECB rates increase, there is no chance that SVRs willdecrease! It is likely that SVRs will increase in line with ECB increases in the short-medium term, but there may be a point where SVR increases are less than ECB rate increases - this would be some time away and at much higher rate levels, in my opinion.

In the current low rate environment, you could argue that PTSB are under more pressure to increase SVR rates, but its difficult to say whether this will happen.