How much has PTSB overcharged its SVR customers?

Brendan Burgess

Founder
Messages
38,093
Here are my calculations.

I have assumed that they should cut current rates by around 0.4%
This would give a "fair" margin of 3.19%
This would be a "fair"interest rate today of 3.94%
This is still higher than their SVR for new business which is 3.69%

|PTSB SVR|ECB rate|Margin |overcharge from 3.19%
June 2007|5.44%|4%|
April 2008|5.69%|4%|1.69%|
Jan 2009|4.65%|2.5%|2.15%|
July 2009|3.65%|1%|2.65%|
Feb 2010|4.15%|1%|3.15%|
August 2010|4.65%|1%|3.65%|0.5%
Feb 2011|5.65%|1%|4.65%|1.5%
May 2011|5.9%|1.25%|4.65%|1.5%
August 2011|6.15%|1.5%|4.65%|1.5%
Nov 2011|5.9%|1.25%|4.65%|1.5%
Dec 2011|5.19%|1%|4.19%|1%
May 2012|4.69%|1%|3.69%|0.5%
July 2012|4.34%|0.75%|3.59%|0.4%
 

Brendan Burgess

Founder
Messages
38,093
So the overcharge is

August 2010 - Feb 2011| 6 months| @ 0.5%|3%
Feb 2011 - Dec 2011|10 months|@ 1.5%|15%
Dec 2011 - May 2012|5 months|@1%|5%
May 2012 - July 2012|2 months|@0.5%|1%
Total to date|23 months| |24%

So borrowers have been overcharged by a total of 2%.

If someone has a mortgage of €300,000 , they have been charged around €6,000 interest so far in excess of a fair rate.
 
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