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

Hi Brendan,

Thank you for your help on this.

"1) Tracker interest rate
ECB rate: 2.5%
Margin: 1.25%
Total rate: 3.75%
2) If you have an additional mortgage on the same property, what is the rate? No
3) Amount outstanding on your mortgage; 202500
4) Remaining term: 14 years
5) Lender: PTSB
6) Value of your home: 370000
7) Might you trade up or overpay your mortgage? Unlikely
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? I see BOI have a rate at 3.25% for 5 year fixed so maybe something around that rate
10) Does your house have a high BER rating which might qualify it for a lower rate?" No

Do you think its worth switching to fixed? What term would be best? I am leaning towards 5 or 7 years.
We have a personal loan which we took out to get an extension a few years ago. There is 37k remaining on it at around 8%. Is it usually possible to get that added to the mortgage?

Is there much difference in offers for fixed mortgages if your LTV is < or > than 60%? My query above about the personal loan would push it into the >60% bracket.

Thanks for your help!
 
You can fix with ptsb at these rates
1672678773486.png

I think you should do so.

It would have been better to switch lenders when you first asked about it in June last year.

I don't think you should switch now as rates will probably have gone up by the time you get approval.

The problem is that you lose your tracker after the 5 years is up. You will then be at the mercy of ptsb which has a long history of charging existing customers high rates. But at that stage, you can switch.

I would just fix the mortgage now before rates go up.
Then ask about adding the personal loan to it. I don't think that they will but if you apply and wait for a while for an answer, mortgage rates may well have risen.

Brendan
 
Brendan Burgess said:
You can fix with ptsb at these rates
View attachment 7036

I think you should do so.

It would have been better to switch lenders when you first asked about it in June last year.

I don't think you should switch now as rates will probably have gone up by the time you get approval.

The problem is that you lose your tracker after the 5 years is up. You will then be at the mercy of ptsb which has a long history of charging existing customers high rates. But at that stage, you can switch.

I would just fix the mortgage now before rates go up.
Then ask about adding the personal loan to it. I don't think that they will but if you apply and wait for a while for an answer, mortgage rates may well have risen.

Brendan
Click to expand...
Thanks Brendan.
I have called PTSB and they have told me that I can move to Fixed rate and at the end of that term I will be moved back onto my tracker (or fix again). I was surprised at that, I assumed they all move to Variable once the term is up, but she said some trackers had it built into the T&C's that they can return on the tracker with the same margin (1.25%).

Seems like a no-brainer now and I'll go fixed for 5 years.
Thanks again!
 
Globble said:
I have called PTSB and they have told me that I can move to Fixed rate and at the end of that term I will be moved back onto my tracker (or fix again).
Click to expand...
Interesting! I'd get that in writing if I were you (or find it in your tracker mortgage contract).

Note that a clause like "You will be offered a tracker at the then prevailing rate" is useless – because the prevailing rate at that future date could be very high.
 
Paul F said:
I'd get that in writing if I were you (or find it in your tracker mortgage contract).
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I wouldn't delay fixing for this at all.

Fix first and ask questions later.

Follow up with a letter to ptsb referencing your conversation with x on 3rd January at 10 am confirming that you will be moving back to the tracker at 1.25%.

Brendan
 
Brendan Burgess said:
I wouldn't delay fixing for this at all.

Fix first and ask questions later.

Follow up with a letter to ptsb referencing your conversation with x on 3rd January at 10 am confirming that you will be moving back to the tracker at 1.25%.

Brendan
Click to expand...

Yeah that's the plan. I rang again to confirm and it is as I said above. Some mortgage contracts had the option to go back to their agreed tracker rate(not prevailing rate) after the first fixed term. If I decided to refix in 5 years, to go another 5 years, I won't have the option to go back to the tracker at that point. I've asked for that in writing also. Thanks again folks.
 
Thanks for the update.

When I started these threads I told people to assume that they would lose their trackers as it would be unwieldy otherwise. But, of course, some contracts do not lose their trackers after fixing.

In any event, fixing is the right decision for most even if they lose their tracker.

Brendan
 
Hi Brendan,

I am wondering if you can give me advise.
1) Tracker interest rate
ECB rate: ECB + 0.95%
Total rate: 3.45%
2) If you have an additional mortgage on the same property, what is the rate? No
3) Amount outstanding on your mortgage; 118,000
4) Remaining term: 9 years
5) Lender: PTSB
6) Value of your home: 420,000
7) Might you trade up or overpay your mortgage? Unlikely
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? PTSB for 5 year fixed so maybe something around that rate
10) Does your house have a high BER rating which might qualify it for a lower rate?" No

Thanks so much.

https://www.askaboutmoney.com/threads/ptsb-tracker-mortgage-9-years-left-what-to-do.230145/reply?quote=1807334 (Quote) https://www.askaboutmoney.com/threads/ptsb-tracker-mortgage-9-years-left-what-to-do.230145/reply?quote=1807334 (Reply)
https://www.askaboutmoney.com/posts/1807334/report (Report) https://www.askaboutmoney.com/posts/1807334/edit (Edit)
 
Caffreycaroline said:
ECB rate: ECB + 0.95%
Click to expand...

when the rates go up to 3% , you will be paying 3.95% . And they may well go up a further 0.5% , so you would be paying 4.45% . They could go up or down after that. No one knows.

You can fix for 5 years at 3.6% but when the 5 years is up, you will have lost your tracker.

However, with only 9 years remaining, you will be at the mercy of ptsb's exploitative treatment of existing customers for only 4 years and the balance will be down to €60k and falling rapidly.

So, I think it's clear. Fix your mortgage rate for 5 years. (You could also go for 7 years at 3.8% - it's much of a muchness.)

If you do decide to fix, do so today before rates rise again.

1675245049512.png
 
Brendan Burgess said:
when the rates go up to 3% , you will be paying 3.95% . And they may well go up a further 0.5% , so you would be paying 4.45% . They could go up or down after that. No one knows.

You can fix for 5 years at 3.6% but when the 5 years is up, you will have lost your tracker.

However, with only 9 years remaining, you will be at the mercy of ptsb's exploitative treatment of existing customers for only 4 years and the balance will be down to €60k and falling rapidly.

So, I think it's clear. Fix your mortgage rate for 5 years. (You could also go for 7 years at 3.8% - it's much of a muchness.)

If you do decide to fix, do so today before rates rise again.

View attachment 7206
Click to expand...
Thanks so much for this Brendan this was our gut feeling anyway.
 
I have two trackers on two properties with PTSB and am wondering with the recent ECB increases should I make some adjustments :

TRACKER ONE 1) Tracker interest rate
ECB rate: <80% <500K ECB+0.80%
Total rate: 3.30%
2) If you have an additional mortgage on the same property, what is the rate? N/A
3) Amount outstanding on your mortgage; 27388.52
4) Remaining term: 3.5 years
5) Lender: PTSB
6) Value of your home: 250000
7) Might you trade up or overpay your mortgage? This house is now rented out - wondering if paying if off is worthwhile
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? Not sure of the current options
10) Does your house have a high BER rating which might qualify it for a lower rate? No

TRACKER TWO : 1)Tracker interest rate
ECB rate: ECB+1.10%
Total rate: 3.10%
2) If you have an additional mortgage on the same property, what is the rate? N/A
3) Amount outstanding on your mortgage; 233825.36
4) Remaining term: 17 years
5) Lender: PTSB
6) Value of your home: 475,000
7) Might you trade up or overpay your mortgage? May trade up.
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? Not sure of the best rates out there at present.
10) Does your house have a high BER rating which might qualify it for a lower rate?" No
 
Laura said:
3) Amount outstanding on your mortgage; 27388.52
4) Remaining term: 3.5 years
Click to expand...

@Laura

Dealing with Tracker 1
With the ECB rate now at 3%, you will soon be paying 3.8%. This could increase further and then at some stage it will probably settle or come down a bit.

You could fix at 3.5%

But let's say you make a wrong decision and you end up paying 1% more. That will cost you about €500 over the remaining term.

So don't worry too much about it.

Anyway, as it's a buy to let, I wouldn't recommend fixing as they would probably charge you their buy to let fixed rate.

And as a tracker is a variable rate you can clear it early if you wish to without penalty.

So keep Tracker 1 on the tracker.

Brendan
 
Laura said:
ECB rate: ECB+1.10%
Total rate: 3.10%
2) If you have an additional mortgage on the same property, what is the rate? N/A
3) Amount outstanding on your mortgage; 233825.36
4) Remaining term: 17 years
Click to expand...

@Laura

With €233k and 17 years left, this is the one you should spend most attention on.

The ECB rate is currently 3%, so you will soon be paying 4.1%.

You could fix for 5 years at 3.6% but you would lose your tracker when the 5 years is up.
You could fix for 7 years at 3.8% but you would lose your tracker when the 7 years is up.

ptsb has a long history of exploiting their existing customers so with 17 years left, I would not give up the tracker and throwing yourself on the mercy of ptsb's interest rate policy.

Laura said:
7) Might you trade up or overpay your mortgage? May trade up.
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This is a complication.
For example, if you knew that you were going to trade up in about 5 years , then I would recommend that you fix for 5 years as you will be losing the tracker anyway.

But if the timing is uncertain, then stay on your tracker, which you can clear early without penalty. For example, if you fix today for 7 years, and then decide to trade up next year, you could face an early repayment penalty.

Brendan
 
Laura said:
This house is now rented out - wondering if paying if off is worthwhile
Click to expand...

Your buy to let is at 0.8% and you get tax relief on it, which brings down the effective rate to 0.4%
Your home is at 1.1% and you get no tax relief.

So, if you are going to pay down some mortgage, pay down your home loan.

You probably should do a full moneymakeover.

Money makeover

Budgeting and dealing with debt moved to Mortgage Arrears and Debt Forum .
www.askaboutmoney.com

Brendan
 
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Hi Brendan, thx in advance for your help, we are a bit lost:

1) Tracker interest rate: ECB rate + 2.10
2) If you have an additional mortgage on the same property, what is the rate? No
3) Amount outstanding on your mortgage; 200.767€
4) Remaining term: 18 years
5) Lender: PTSB
6) Value of your home: 320.000€
7) Might you trade up or overpay your mortgage? We have 30.000€ in savings, we kept this as a security in case of losing our job or being sick, I understand that now with inflation it’s losing value, but not sure if we should use it for mortgage as we still need some kind of security… Or find a good saving account? Your advice about these savings would be much appreciated
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? I am not sure
10) Does your house have a high BER rating which might qualify it for a lower rate?" Our BER rating is D1
 
CloarsanD15 said:
1) Tracker interest rate: ECB rate + 2.10
Click to expand...

That tracker margin makes it worth very little.

You could fix with ptsb at 3.7% for 5 years or 3.9% for 7 years.

You will soon be paying 5.1% and it's more likely to rise than fall.

So, I think you should fix for 7 years.

You might also look at switching to another lender but it seems that ptsb is competitive

Best Buy - Which lenders have the lowest mortgage rates? (Updated April 2023)

While I wrote the original post on this, Paul F has edited it and made it far easier to read and has kept it updated. Brendan You (or your broker) should apply to two or three of the cheapest lenders simultaneously. It might take some time for your loan offer to materialise, and today's Best...
www.askaboutmoney.com

Brendan
 
CloarsanD15 said:
We have 30.000€ in savings, we kept this as a security in case of losing our job or being sick, I understand that now with inflation it’s losing value, but not sure if we should use it for mortgage as we still need some kind of security…
Click to expand...

Your mortgage is currently 62% Loan to Value.

€320k @60% is €192k so you should definitely pay at least €8k off the balance and reduce the LTV to 60% where the rate is lower.

For example, 7 years LTV <60% is 3.8% vs. 3.9%
0.1% on €192k is an extra saving of €190 a year. On €8k that is a very good tax-free return. 2% + the 3.8%, so 5.8% in total.

Brendan
 
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Paul F said:
If you get an updated valuation from PTSB that says that your home is worth €335k or more, you will move into the "LTV<60% bracket", and so you will be eligible for the lower (3.8%) rate without having to pay a lump sum off the balance.
Click to expand...
Thank you so so much Brendan, I really appreciate. Will talk to Permanent TSB asap.
 
Hi Brendan,
You previously responded to a thread in the general tracker fix thread and I have updated the figures below
1) Existing tracker margin - ECB + .75%
2) Amount outstanding on your mortgage - 139k(poss 70k, see below)
3) Remaining term - 13 years
4) Lender - PTSB
5) Value of your home - 457000
6) Might you trade up or overpay your mortgage? - Have 70k in gov bond and thinking of paying lump sum
7) Do you face any barriers to switching-Yes, land registry issue with maps hopefully resolved in the next 6 months
8) What rates are you considering fixing at. Offer letter from PTSB offering Mgr Var LTV<50% at 3.6%, 2 yr fix 4.25, 3 yr-4.05, 5 yr-4.15, 7 yr at 4.55%.
9). BER rate is not an option

I am reluctant to give up my tracker but with a possible balance of 70K I could absorb some more rate rises but I am leaning to go with a 3 yr fix for peace of mind and make overpayments if I go with the Mgr Var rate option.

Thanks
 
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