How much is ptsb's 2% or repayments worth?

georged3rd

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I'm looking to confirm what the effective rate for PTSB's 3yr fixed @2.8% for 25 years is after taking into consideration the 2% cashback & 2% of repayments & how to calculate it. I see the first post has the 2018 starting rate of 3.15%

Our scenario: 70% LTV & we're looking to use the 2% cashback & 2% of repayments to reduce the first 36 monthly repayments & then switch from the PTSB SVR to a more competitive rate (subject to what's available on the market at the time).
 
I would calculate it as follows

2% over three years is worth around 0.7%
So you reduce the 2.8% to 2.1%

Your total repayments in 3 years would be about 17% of the capital, so the 2% of repayments would be worth a further 0.3%, bringing it down to 1.8%.


But if I were with ptsb , I would be trying to switch away again immediately while I can. They treat their existing customers very unfairly.

Brendan
 
Yes, it was @Sarenco that corrected me last year. For low LTVs high value mortgages it's probably the best out there. But as you say, switching away is key at the end of term (although it's likely the market will have changed within 3 years).
 
But if I were with ptsb , I would be trying to switch away again immediately while I can. They treat their existing customers very unfairly.
Brendan

Do you mean that from a roll-off/SVR rate perspective & access to new customer rates or otherwise? I know their overpayments options aren't as flexible as KBC & especially UB & they apply overpayments differently (as credits). Looking to know what to look out for or what's possibly ahead of us with PTSB.
 
Do you mean that from a roll-off/SVR rate perspective & access to new customer rates
Exactly this.

The other bit you mention re overpayment sitting as a credit is a benefit. They don't calculate a break fee, but you get the reduced interest. And if you have to take a break in payments, the credit prevents you going into arrears. However, both of these are process / systems limitations rather than contractual, so cannot be relied upon.
 
For low LTVs high value mortgages it's probably the best out there.
Would 70% LTV & a mortgage of ~300k be considered as low LTV & high value?
If the effective rate is a little over 2% over 3 years it seems attractive, even compared to UB, not withstanding comparatively restrictive overpayment options.
 
Yes, they have their best rates for >250k balances.
I think their best rate is 2.75% for 60% LTV, but yours would be 2.8%. the effective rate is as good as you'll get, but keep an eye on the market and how things pan out before your fixed term ends.
 
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