PTSB increasing variable rate by 1%

N

NorfBank

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It has been reported that PTSB are to raise their variable rate by 1% not 0.5% as expected. This comes as a bit of a shock, it is likely other lenders will follow suit.

If you are worried about interest rate increases overstretching you then it's time to fix. Unless the flexibility of being on a variable rate is necessary (overpay, pay back lump sums, redeem mortgage without penalty) then everyone should consider fixing some part of their mortgage apart from those on tracker mortgages.

www.moneybackmortgages.ie
 
Shawady said:
Did they just announce an increase recently?
Is this an additional 1% on top of that increase?
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No, there have been reports of an expected increase since the New Year. This was expected to be .5%, now it's expected to be 1%. That's a lot of expecteds.

It's a wait and see until PTSB confirm it.
 
So, say if the ECB rate goes up by 2% over the next while (which it may) their variable is going to be 7.19?? And those rates they are quoting are their low rates too. The existing customer variable rate (which never gets reported to my annoyance) right now is 4.65%!
 
I don't think it will be unusual to see people paying 7-8% on variable rates in the next couple of years.
When I bought my first house in 1998, I think our first rate was somewhere around the 7% mark.
 
Shawady said:
I don't think it will be unusual to see people paying 7-8% on variable rates in the next couple of years.
When I bought my first house in 1998, I think our first rate was somewhere around the 7% mark.
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I agree they could go to that alright. I'm just wondering how people who bought in 2003-2008 will be able to afford that.
 
Shawady said:
I don't think it will be unusual to see people paying 7-8% on variable rates in the next couple of years.
When I bought my first house in 1998, I think our first rate was somewhere around the 7% mark.
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True. Bought my first house in 1998 and was paying a similiar rate. My mortgage was for IR£60,000. Very manageable to pay 7% then. If I had to pay 7% on my current mortgage (bal €160,000) would not like it (have a 1.75% tracker at present)
 
Hi Norfbank / Brendan,
looking for a bit of info from one of you as you guys seem to be the ones in the know around here! I'm very worried about potential interest rate increases as I can barely afford my repayments at the moment (on a variable). Am thinking of fixing for 1 or 2 years, however, my question is as follows:

Is it possible to renegotiate your terms with the bank while on a fixed rate ? I.e. if my circumstances should change for the worse, could I still extend the term of my mortgage or be approved for a period of interest only while on a fixed rate? Thanks.
 

To come off a fixed rate you'd have to pay a penalty.

Not sure what the benefit to fixing for only 1 or 2 years is to be honest. Interest rates are on an upward path to 6% average. They're unlikely to drop to current rates for another 10 years. The fixed rate would take account of this so you'd essentially be increasing your rate now with no savings. IMO you'd need to be fixing for 10 years to see any benefit. A minimum of 5 but really 10.
 

I don't want to come off the fixed rate, I just want to know whether or not I can extend the term of my mortgage while my rate is fixed. Can someone please clarify this?

The benefit of fixing for me at the moment is that the fixed rate I am being offered is very competitive (only 0.3% higher than my current rate) so the repayments at that rate are affordable for me with my current income. That is enough comfort for me for the moment.

Who knows what rates will be in 2 years - obviously we are still experiencing historically low average rates and inflation will impact on this over the coming years in an upward direction- this is why I want to fix now, as per my original post. (I think we should all have learned the dangers associated with predicting rate increases / decreases however!!) I wouldn't even consider fixing for 5-10 years.
 
MarieM said:
I don't want to come off the fixed rate, I just want to know whether or not I can extend the term of my mortgage while my rate is fixed. Can someone please clarify this?
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Generally you cannot any change any aspect of a fixed rate mortgage agreement without penalty.
 
Just called them and you cannot change from variable to fixed as there is a 10 day freeze in operation
 

Apologies for confusion. To change any terms of a fixed rate mortgage, length, amount, interest only etc. you would need to come off it at which stage a penalty would kick in and you'd be subject to whatever is available at the time. e.g. if you wanted a fixed rate over longer term it would be at the prevailing rate not the rate you're on already.

Hope that clears things up.

Indeed 0.3% is very competitive if it's still available. Reports today are that PTSB has abolished fixed rates. Others will likely follow as it all seems to be a who moves first game then they're all like sheep.
 
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