FTB with partner - is PTSB the best option for us given our scenario?

[Cloudd]

I would love a few opinions here. We are in the market for a first home with a budget of approx 550k.

My partner (35) and I (37) are both on c. €100k and that may increase by 10% in the new year.
I have €60k in savings, and she has €110k. We both have zero debt.

We are looking at putting 20% deposit (110k ish) on to avail of the 80% LTV deals and generally just keep our level of mortgage debt as low as possible.


Below is based on €555,000 house, €444,000 loan over 30 years.

My question:

Is PTSB a bit of a no-brainer here due to the extensive cash back?

I make it that even with paying almost €100 per month more due to extra .3% rate, we will be better off by about €4k by the end of the first 3 years. We would fully intend on switching to the best market alternative after 3 years expires (potentially paying off a lump then while briefly on a variable).

BANK	% YR	Rate	Monthly Payment	Cash Back / Legal fees contribution
Avant Money	3 yr fixed	2.20%	1,685
Ulster Bank	5 yr fixed	2.20%	1,685	1,500
KBC	2/3 yr fixed	2.30%	1,708	1,500
PTSB	3 yr fixed	2.50%	1,754	8,880

 

[Brendan Burgess]

Redo your figures ignoring the monthly payment.

You should look only at the interest charged as the payment includes capital.

You might arrive at the same conclusion though.

Brendan

 

[SickandTired]

Just one thing, Would you get a 30 year mortgage if one of you is 37?
We were recently told we could only have 25 years as my wife is 40.

 

[Cloudd]

Redo your figures ignoring the monthly payment.

You should look only at the interest charged as the payment includes capital.

You might arrive at the same conclusion though.

Brendan

Hi Brendan,

I've redone the number via Karls calculator and getting the below.

Total interest over 3 years = €32,185 with PTSB.

Year	Interest	Principle	Total	LTV	Balance
2021	10,985	10,066	21,052	78.2	433,933
2022	10,730	10,321	21,052	76.3	423,611
2023	10,470	10,582	21,052	74.4	413,029

On the UB 3 year @ 2.3%, total interest over 36 months is €29,576.

I make out approx €4,691 better off when you factor in cashback, legal fees and interest taken into account via PTSB. I may still be out on some numbers there but I think it still points to the same conclusion.


Another question I have (apologies - I may have a few along the way).....

Is the term length on the outset set in stone for our lifetime?

As in if we opted for a 30 year but in 3 years when looking to switch to a new lender on a new fixed rate, could we redo the 27 year balance into say a 20 year term with the new lender? Or does it stay at 27?

 

[Coldwarrior]

As in if we opted for a 30 year but in 3 years when looking to switch to a new lender on a new fixed rate, could we redo the 27 year balance into say a 20 year term with the new lender? Or does it stay at 27?

You can change the term when you switch to a new bank, provided the new term wouldn't put you over the new bank's maximum allowable age (i.e. some banks let a mortgage run until someone is 65 some 68 etc). If you have mortgage protection matching the original mortgage term you'd obviously need to take out a new policy also if you want to extend the term. You're generally better off to keep the term as long as possible and overpay rather than reducing the term.

 

[PebbleBeach2020]

Open s current account with PTSB and get 2% back of your monthly repayment. That should shave another 0.12% approximately off the effective interest rate. So maybe 2.38% with PTSB.