Breaking a fixed rate to pay a lump sum with PTSB

B

BlackandBlue

Registered User
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I am looking for some info if anyone can advise.

Bank is the PTSB.

I have verbally got the figure to break the current fixed rate.
They will post out the confirming paperwork.

Today I spent nearly 40 minutes on the phone between the jigs and the reels, so would prefer not to have to do that again.

So when I get the paperwork how do we go about setting the lump sum against the outstanding balance.

Also we want to keep the repayment amount the same so we reduce the number of years left.
  • Do we send back the paperwork and move to the "standard variable rate" first
    • Then apply the lump sum to the standard rate mortgage amount?
    • Then fix again?
  • OR
  • Can we send back the paperwork with an instructions to
    • Transfer "X" amount to pay down the mortgage
    • Fix for "X" years
    • overpay by "Z" where "Z" is the difference between our old rate and the new rate?
I have been sort of comparing rates with other banks but the outstanding balance may not make it worthwhile to pay solicitors fees etc to change.
 
Hi B&B

What are you trying to do?

Could you provide the figures?

For example
1) Are you just trying to pay a lump sum off your mortgage?
2) Do you just want to break out of your current fixed rate?

Brendan
 
Hi Brendan and all,
Regarding
1)Are you just trying to pay a lump sum off your mortgage?
2) Do you just want to break out of your current fixed rate?

With only one child left in college we were looking at our option's regarding our mortgage.
Due to personal circumstances at the time we locked in to a 5 year fixed term as we needed certainty.

Officially the mortgage has 7 years to run.

We have built up some savings.

Specifically our idea was to to pay a lump sum and thus save on interest payments and also the possibility of increasing the repayment amount.
I was not too sure how to go about this and believed that we needed to break the fixed term contract to allow us to do this..

I managed to speak to a nice lady in the PTSB mortgage section yesterday who was very helpful.
We do not have to do anything.

She set up a DD to allow us to pay a lump sum against the mortgage.
This can also be used during any month where we have some unallocated money.

This builds up as "prepaid" and the interest is calculated based on the adjusted outstanding balance (current balance less the prepaid amount).
Consequently the official repayment amount is unchanged.

Once the "prepaid" amount will be in excess of the outstanding balance and we will simply close the account.
 
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