Key Post I have a Permanent TSB tracker – should I consider fixing?

1) Existing tracker margin. 1.25%

2) If you have an additional mortgage on the same property, what is the rate?
Fixed at 3.20
3) Amount outstanding on your mortgage
Tracker 119K Fixed 29k
4) Remaining term 15 years
5) Lender PTSB
6) Value of your home 340k
7) Might you trade up or overpay your mortgage? No
8) Do you face any barriers to switching? E.g., an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage, you are now renting out the property. No
9) What rates are you considering fixing at? Tracker to 7 year fixed.
10) Does your house have a high BER rating which might qualify it for a lower rate? Check it here or estimate it if necessary. No
 
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@touche1410

permanent tsb has predatory lending rates for existing customers.
If you fix, you will lose your tracker and be subject to those rates when the fixed rate is up
With a mortgage of €150k, it is well worth switching to another lender like AIB or Avant.

However, if you don't want to switch stay on the tracker. It gives you some long term protection from ptsb.

You don't tell us how long is left of the fixed term for the €29k?
If you are not prepared to switch, you should probably refix this for 7 years at 3%.

Brendan
 
Hi Brendan

just looking for advice on the below as in a bit of a muddle of what to do


Existing tracker margin 1.68%
2) Amount outstanding on your mortgage
2640k
3) Remaining term 21yrs
4) Lender PTSB
5) Value of your home 580k
6) Might you trade up or overpay your mortgage? No
7) Do you face any barriers to switching? E.g. an impaired credit record, a mortgage with a warehoused portion due to a restructuring, reduced income since you took out your mortgage.No
8) What rates are you considering fixing at? 3.00% over 7 years
9) Does your house have a high BER rating which might qualify it for a lower rate? NO






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@djkat

Assuming your mortgage is €264k ...

You should not fix with permanent tsb as you will be vulnerable to their discriminatory rates for existing customers at the end of the fixed rate period. Given that you have 21 years left to go and you don't intend to overpay it, I think that sticking with the tracker is best, even though the margin of 1.68% is very high.

You could fix for 5 years or 7 years at 3%, and I think you would save money for those 5 or 7 years, but you would be very vulnerable after that. For a long time, ptsb didn't offer existing customers fixed rates, while offering them to new customers. They can't be trusted.

So, I think you should bite the bullet and start the process of switching to a lender which has fairer lending policies - either Avant or AIB.

If rates go up in the meantime, and it's not worth switching, so be it.

Brendan
 
Hi Brendan

Looking for some advice,really very little knowledge around this area really trying to learn so any advice is greatly appreciated

) Existing tracker margin ECB + 1.10%
2) Amount outstanding on your mortgage €240,000
3) Remaining term 20yrs
4) Lender PTSB
5) Value of your home €370,000
6) Might you trade up or overpay your mortgage? No
7) Do you face any barriers to switching. No
8) What rates are you considering fixing at? - I haven’t asked yet.
 
Hi Brendan,

Some help please…


) Existing tracker margin ECB + 2.25%
2) Amount outstanding on your mortgage €160,000
3) Remaining term 20 years
4) Lender PTSB
5) Value of your home €350,000
6) Might you trade up or overpay your mortgage? No
7) Do you face any barriers to switching. Yes, possibly.
8) What rates are you considering fixing at? 3% for 7 years
 
JimGem45 said:
Hi Brendan

Looking for some advice,really very little knowledge around this area really trying to learn so any advice is greatly appreciated

) Existing tracker margin ECB + 1.10%
2) Amount outstanding on your mortgage €240,000
3) Remaining term 20yrs
4) Lender PTSB
5) Value of your home €370,000
6) Might you trade up or overpay your mortgage? No
7) Do you face any barriers to switching. No
8) What rates are you considering fixing at? - I haven’t asked yet.
Click to expand...
I said no to barriers-this is not accurate really don't know if I do
 
@JimGem45

JimGem45 said:
) Existing tracker margin ECB + 1.10%
Click to expand...

JimGem45 said:
3) Remaining term 20yrs
Click to expand...


You should not fix with ptsb as you will lose your tracker for the rest of the mortgage after the fixed period and you will then be subject to ptsb's predatory rates for existing customers.

so start a switch to aib or avant and if rates have gone up before you draw down the money, stay on your tracker.
 
@Suz2015

a margin of 2.25% is worth very little, so treat it as a variable rate mortgage. you will shortly be paying 4.25% so fixing is the right idea. Losing 2.25% tracker is not losing much.

after the fixed period is up, then you will be subject to ptsb's predatory rates for existing customers, so fixing for the longest period is the best insurance. so 7 years seems correct.

Brendan
 
Brendan Burgess said:
@JimGem45






You should not fix with ptsb as you will lose your tracker for the rest of the mortgage after the fixed period and you will then be subject to ptsb's predatory rates for existing customers.

so start a switch to aib or avant and if rates have gone up before you draw down the money, stay on your tracker.
Click to expand...
Hi thanks for that

I don't understand the second part? Do I need to move to aib or avant?
Draw down money??
 
JimGem45 said:
Hi thanks for that

I don't understand the second part? Do I need to move to aib or avant?
Draw down money??
Click to expand...

OK. If everything happened instantaneously, then I would say switch to avant or aib

But it's a moving target.
You could start the switch now.
But you don't get the paperwork in on time.
They don't process it on time.
By the time they make you an offer , the rate has gone up.
Or even if they make you an offer at the existing rates, you don't get the draw down in time.

It's just an added headache of being a ptsb customer.

Brendan
 
Hi Brendan,

Would appreciate your advice:-

1) Existing tracker margin 1.68% Tracker
2) Amount outstanding on your mortgage €91,000
3) Remaining term 11 years
4) Lender PTSB
5) Value of your home €330,000
6) Might you trade up or overpay your mortgage? Yes, would be able to overpay
7) Do you face any barriers to switching. No
8) What rates are you considering fixing at? 3% - 7 year term

Am I better off switching for 3% rate over a 7 year term or just overpay my mortgage? Also, if I did go for the 7 year fixed, should I try to save for the balance left on my mortgage and clear it at the end of the fixed term, so that I'm not at the mercy of their variable rates in 7 years time? TIA
 
@Laura123

Yes, I think you are right to fix for 5 years or 7 years. With 11 years left, there won't be much time left after the fixed rate is up for ptsb to exploit you.

Here is your repayment schedule if you fix at 3%.


1667845193801.png
Of course, if you overpay your mortgage, the balance will fall faster.

Laura123 said:
Am I better off switching for 3% rate over a 7 year term or just overpay my mortgage?
Click to expand...

These are not mutually exclusive.

You can fix for 7 years and overpay your mortgage. You might face an early repayment fee on the overpayment, but it should be small enough and may be zero.

The shorter the remaining time left on the fixed rate, the lower the potential early repayment fee. So, for that reason, I would recommend fixing for 5 years instead of 7 years.

You definitely should not be saving up the money to overpay it at the end. Overpay it as you go.

Brendan
 
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Laura123 said:
6) Might you trade up or overpay your mortgage? Yes, would be able to overpay
Click to expand...

At 3% your repayments will be €810 per month. If you are sure that you can overpay monthly, then you should ask ptsb to reduce the term of your mortgage and fix it at 3% for the same time. That way you would not have any early repayment fee.

For example, if you increase the repayment to €1,200 a month, the remaining term would fall to 7 years.

If you increase it to €962, the term would fall to about 9 years.

(All these figures are approximate and will depend on the exact balance and remaining term when you fix.)

Brendan
 
Brendan Burgess said:
You might face an early repayment fee on the overpayment, but it should be small enough and may be zero.
Click to expand...
@Laura123 There are no penalties if you make overpayments on PTSB fixed rates – see this thread.

In summary:
  • You can overpay by as much as you like each month without penalty, and this builds up as a credit on your account
  • You can use this credit to take a payment holiday or to reduce the monthly repayments (or to pay off part of the principal at the end of the fixed period)
  • You are only charged mortgage interest on the net balance, i.e., on the mortgage balance after the credit has been subtracted
 
Brendan Burgess said:
At 3% your repayments will be €810 per month. If you are sure that you can overpay monthly, then you should ask ptsb to reduce the term of your mortgage and fix it at 3% for the same time. That way you would not have any early repayment fee.

For example, if you increase the repayment to €1,200 a month, the remaining term would fall to 7 years.

If you increase it to €962, the term would fall to about 9 years.

(All these figures are approximate and will depend on the exact balance and remaining term when you fix.)

Brendan
Click to expand...
Thank you for taking the time to do up these calculations and for the advice
 
Paul F said:
@Laura123 There are no penalties if you make overpayments on PTSB fixed rates – see this thread.

In summary:
  • You can overpay by as much as you like each month without penalty, and this builds up as a credit on your account
  • You can use this credit to take a payment holiday or to reduce the monthly repayments (or to pay off part of the principal at the end of the fixed period)
  • You are only charged mortgage interest on the net balance, i.e., on the mortgage balance after the credit has been subtracted
Click to expand...
Thanks Paul for the info.
 
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