PTSB 2% monthly cashback

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smndly

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Hi, trying to figure out the maths of this on APR.

Have AIP from PTSB at 3.7% for 35 year term. If I open an explore account I get 2% of cash back on monthly mortgage repayments. What would this mean for net APR. I think it reduces APR by approx 0.1% so overall APR would be 3.6%?
 

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Cashback (available to new customers only, but not available on the 4-year fixed rate):
  • 2% of the mortgage balance at drawdown
  • 2% of the monthly mortgage repayments back in cash every month until the end of 2027 (provided you open an Explore account, which has a €6 monthly fee) This is worth about 1/10th of 1% or €120 a year on a mortgage of €100,000.
 
smndly said:
I think it reduces APR by approx 0.1% so overall APR would be 3.6%?
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It's worth a bit more than that.

For every 100k borrowed at 3.7% for 35 years, the monthly repayment is €424.96.

A 2% discount reduces this to €416.46 which is equivalent to 3.55% or a 0.15% discount

A shorter term, e.g. 20 years, means the 2% has a bigger influence on the adjusted APR. It would be more like 3.47% or a 0.23% discount
 
That's a good point. But it would all be a bit easier if they just charged better rates to existing customers after the initial sweetheart rate.
 
lff12 said:
That's a good point. But it would all be a bit easier if they just charged better rates to existing customers after the initial sweetheart rate.
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Exactly. These kinds of upfront (at loan drawdown) and ongoing monthly cashback gimmicks are a complicated distraction from the fundamental underlying cost of credit which is what ultimately matters to consumers.
 
I had a quick look at this and I think it does not apply if your mortgage is a buy-to-let loan. If you have a previous ulster bank mortgage that transferred you may get the cash back.
Also to hold an explore account you pay €8.00 per month but can get up to €5 back if you use your card for transactions.
 
Did any former Ulster customers actually receive the cashback?
I didn't, despite meeting all the criteria (normal loan, paid from an Explore account). When I queried this today I was told, after being passed from department to department and then rung back, that a/ I had a BOI mortgage (!!!) as apparently the originator code in the DD - the one called "PTSB Mortgage DD" that was set up by PTSB - shows in their system as BOI (I actually think it's Pepper, TBH) and then b/ that I should receive it but the internal email they had said it's for payments from March onwards despite the online FAQs clearly saying it would be triggered by payments made in February.
It was quite surreal being told the DD was being requested from Bank of Ireland!
I've been asked to see if it comes through in April but let's just say I suspect I'm going to be ringing them again... if I was to stay with PTSB until 2030 this would actually be worth 2K or so to me, so worth fighting for.

2% Cashback Monthly with our Mortgage | PTSB

Got a question about mortgages? Take a look at our FAQ below or give us a call on 0818 50 24 24 for more info .
www.ptsb.ie
 
didnt get it on one mortgage this month either (one that originated from UB) they are to call me back!
 
This was only starting from 01/03/25. My understanding is that the cashback is paid one month in arrears. So if you paid mortgage from explore account on 01/03/25, you should receive cashback award on 01/04/25. Will find out next month for sure.
 
This was only starting from 01/03/25. My understanding is that the cashback is paid one month in arrears. So if you paid mortgage from explore account on 01/03/25, you should receive cashback award on 01/04/25. Will find out next month for sure.
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Indeed we will. But their own FAQs specifically state otherwise - see screenshot.

didnt get it on one mortgage this month either (one that originated from UB) they are to call me back!
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In all fairness, they *did* call me back. But the whole BOI thing was just bizarre.

 
Is there a catch? It seems too good.... My mortgage is ca 1500, which means I would get 30 Euros back each month? The account fee is 8 Euro per month, and if I use the bank card I'd get 5c for each transaction with a cap of 5 Euros... It all seems to be too good to be true, so I'm wondering where the catch is....
 
It works fine for me anyway, cash back arrives on the same day the €8 is charged.
 
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