PTSB Mortgage holders to get 10pc bonus for paying lump sum off trackers

Did anyone come up with a calculator to show how this offer from PTSB would work out in individual circumstances? I got the offer letter from them, they just give an example. But I want to work out how this would apply to me, if it's worth doing in my case.

As a bye the bye I notice they word the letter such that it appears they are doing the customer a favour, and as a result of customer demand. No mention of the other real reason of saving themselves a fortune on interest. So much for straight-talking and being upfront from the PTSB. I know we expect this kind of thing from banks .But I hoped against hope that they would just say it as it is, and stop engaging in this kind of spin.
 
I believe if lower number of people apply for this, they will come up with better offer in near future, or extend it to regular overpayment rather than lump sum and extend it for much longer period.
 
I wonder if this means that the clawback if you sell your house within 6 months still applies? It wouldn't make a lot of sense.

Brendan
 
Brendan Burgess said:
I wonder if this means that the clawback if you sell your house within 6 months still applies? It wouldn't make a lot of sense.

Brendan
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This paragraph in the article suggests that the clawback no longer applies:

Up to now, mortgage holders could only pay off half the mortgage. But now someone who is selling their house will be able to benefit from the 10pc bonus deal.
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I found this very interesting article from Nama Winelake which really explains this offer very well. Essentially the longer you have left on your mortgage, the less benefit this is to the mortgage holder. If you have more than four years left on your mortgage then PTSB starts to profit and your "10% saving" starts to reduce annually to a point where you can actually lose out if your mortgage has a long term to run, while PTSB profits.

http://namawinelake.wordpress.com/2011/04/18/a-cheeky-offer-on-tracker-mortgages-from-permanent-tsb/

In any event, in my case. I have made my decision. I'm not going for this offer. I am going to contact PTSB and arrange to directly pay off a lump sum against my mortgage in the usual way which will reduce my overall monthly repayments as opposed to this offer which reduces the length of your mortgage.

At least then I will have peace of mind knowing that in the worst case scenario, i.e. unemployment, I can still pay my mortgage (even if I have to eat pasta and beans for years!) In the meantime, while I am still working I will save the difference between my 'new' repayment and my present repayments and every so often transfer that lump sum off the principal, thereby regularly reducing the monthly repayment.

I guess it all comes down to peace of mind as opposed to whether you can benefit from a relatively small amount of discount. Well it does for me anyway!

Im going to see if I can haggle with the Manager and suggest that as I am currently costing them money because of my tracker mortgage it is clearly in their best interests for me to pay it off as quickly as possible. Therefore is there a discount or 'good will' sum they can offer me in return!! I will probably get shown the door with a flea in my ear but Im up for the challenge! lol

Anybody know what I am currently costing the bank on an annual basis? My tracker rate is ECB + 0.8% on a balance of €97,000?
 
We wnet into ptsb a few weeks ago looking for a 56% mortgage on their fixed rate which is max 50%. Our leverage was that they'd be getting their tracker back. Manager said he really didn't know but would put it to the higher powers, who refused point blank. I was surprised. Anyway, caught wind of the improved deal with 10% discount if you redeem in full and thought that would be for us since our house is going on the market next week. But while they're extending it to full redemption, they haven't extended the end date so you have to request your quote by 17 June and then make your payment within 20 days. It'll be a few months before we have our cheque (fingers crossed). I'm really not sure how many extra people will be enticed by this new offer, don't think there are too many out there with a 200k mortgage and 200k in savings (not enough for them to make the jump from €4m to €500m). But maybe I'm wrong. I'm just hoping they have a poor take up again and just extend the dates by a few months.
 
julius128 said:
I believe if lower number of people apply for this, they will come up with better offer in near future, or extend it to regular overpayment rather than lump sum and extend it for much longer period.
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I think you are right. They would entice many more people with this offer on overpayments. More people will be prepared to overpay monthly than pay off lump sums. Thats if they even have a lump sum in the first place.

Im surprised the other banks havent followed this offer publicly though. I know for a fact they are doing similar if approached with a deal.
 
well, I wish AIB would do a deal - I've twice asked my mngr if I pay off the remaining 360k on a mortgage tracker would I get anything. Answer -no.
Crazily, AIB are paying more to me depositing money then they're charging me on tracker. (No great advantage to me though after tax)
 
Ris said:
I found this very interesting article from Nama Winelake which really explains this offer very well. Essentially the longer you have left on your mortgage, the less benefit this is to the mortgage holder. If you have more than four years left on your mortgage then PTSB starts to profit and your "10% saving" starts to reduce annually to a point where you can actually lose out if your mortgage has a long term to run, while PTSB profits.
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Hi Ris

You should be looking at this from your point of view and not from PTSB's point of view. To be fair to Namawinelake, they did note this in an update to the post.

You should read this post which explains all the factors as they affect you:

I have made my decision. I'm not going for this offer. I am going to contact PTSB and arrange to directly pay off a lump sum against my mortgage in the usual way which will reduce my overall monthly repayments as opposed to this offer which reduces the length of your mortgage.
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This is really a very bad idea indeed. Let's say you owe €200k and you want to pay off €100k. After your option, you will owe €100k. After taking the 10% bonus, you will owe €90k.

You probably should read my guide to mortgage repayment calculations to see how bad your proposal is.

If you want to do the maths. Pay off €90k and invest the remaining 10k in a deposit account. Let it accumulate and your net mortgage will disappear quickly.

Brendan
 
According to an article by Niall Brady in the Business section of last week's Sunday Times, PTSB has been forced to extend the deadline for the overpayment bonus to the end of August given the poor uptake of the offer.

"Only 1,500 borrowers had committed to paying lump sums off their mortgages when the deadline expired on Friday. The average overpayment was €35,000 well above the individual minimum of €5,000.

The total overpayment is just 10% of the ceiling of €500m set on the incentive scheme" said Brady.

Brady reports that trackers are costing PTSB about €400m a year.
 
Well, we got our discount, sold the house, paid off the mortgage and are now €14,500 better off. It may not be a brilliant deal for most but for anyone selling a house anyway it's great!
 
f9710145 said:
Well, we got our discount, sold the house, paid off the mortgage and are now €14,500 better off. It may not be a brilliant deal for most but for anyone selling a house anyway it's great!
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Was there not a condition about you NOT selling the house?
 
The original offer allowed you to pay off up to 50% and had a clawback clause if you redeemed in full within 6 months. The updated offer allowed a full redemption and obviously no full redemption clawback. Once the mortgage account is closed and your house is your own, they have no say in what you do with it.
 
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