we re fully on top of our financials in great depth
Good to hear. I would imagine you have a few options available to you in that case, including reducing the amount of the mortgage to fit into the criteria, or being able to determine affordability even if you do retire.
According to the following article from 2015, the following are the maximum ages for mortgages
AIB 65-68
BoI 70
Ulster 70
KBC 65-68
PTSB 70
http://www.irishtimes.com/business/...will-you-just-have-to-pay-up-faster-1.2182533
Might be worth having a look and see what the best options are for them. Of those, Ulster would be the better option currently (in my personal view).
However, if you do feel trapped in P-TSB with no sign of a reduction in rate coming, then you may want to consider a 5 year fixed term with BoI on 3.45, with 2% cashback. I know its not popular on here, but it may be an option in your case if you cannot move to anything more suitable. My quick calculation shows it would save 63 euro a month - so over 5 years thats 3780 + 8000 cashback = 11780, less cost of switching. Either way, its a 10k saving over 5 years which is not to be laughed at in my view !!
The only risk with this would be whether you can switch again in 5 years or not, as if not you may end up paying over the odds with BoI. However if you walk into it with your eyes wide open you should be fine. Lots can happen, both positive and negative, in 5 years