PTSB vs AIB mortgage

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masterboy123

Registered User
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I am in the process of getting mortgage approved.

Got a good deal from PTSB with 5 years fixed at 3.0% on 70% LTV. Getting 2% cashback on mortgaged amount and 2% cashback on monthly payments up until 2027, with condition its paid from their Explorer Account, which has a monthly fee of 5 euro per month (I am not a PTSB account holder).

And AIB is offering me 2.95% variable. But no cashback awards.

I am thinking to go ahead with PTSB. Am I missing anything worth knowing and it's hidden?

Thanks
 
Hmm, not sure I'd consider that the best deal. Have you entered your details into https://www.bonkers.ie/compare-mortgages/? This will show you best rates available. I entered your details and you can get Ulster 5 year fixed rate at 2.5% and you can get 2.65% from KBC with E3K cashback. Hence, depending on how much the cashback is both of those might work out cheaper.

Couple of questions:
  • How much are you borrowing?
  • Is this a new mortgage or a switcher?

Hidden:
  • PTSB do to treat existing customers the same as new customers
  • I dont think you can overpay on a TSB fixed rate (open to correction on that though). I see the independent has an article that says "With Permanent TSB, you can avoid break fees when overpaying a fixed rate mortgage - however, the overpayment is only applied as a credit on the account and doesn't come off the capital. A spokesman for the bank said the customer would still get "the interest rate benefit [as a result of the overpayment] in the background"."
 
username123 said:
Ulster 5 year fixed rate at 2.5%
Click to expand...
Only on mortgage >500k
OP posted previously and is getting a mortgage <200k

username123 said:
2.65% from KBC with E3K cashback.
Click to expand...
Cashback is only available for switchers.

While the headline rate with PTSB is 3%, the cashback brings the effective rate to under 2.6% over 5 years, so as a new mortgage it's not bad compared to the other offers.

As @username123 points out, PTSB don't currently treat their existing customers the same as new. I wouldn't get overly concerned about that if fixing for 5 years. Things will change a lot in the market before your fixed rate ends.

The overpayment piece is an issue though. I wouldn't rely on a technical systems issue that allows overpayments to continue indefinitely. But if you do manage to build up extra cash that you want to repay, the break fee will be relatively small.

If I remember correctly, you've a tight budget, so being able to fix for 5 years brings a lot of certainty to your finances, so would be the right thing to do in my opinion.
 
How much are you borrowing?
172,000 and paying 30%from our side including HTB.

Is this a new mortgage or a switcher?
New mortgage for a couple. First time buyers.

Ulster is not providing cashback They were offering 1500 towards legal fees

@RedOnion we don't really have a tight budget and would like to pay a big chunk every 3 years or so. Do you think going for 5 years fixed is a bad idea? I know it's difficult to say what's going to happen But AIB was pointing out to go for their variable rate as chances are variable rates may go lower

And if I overpay 15k after 3 years with fixed PTSB, do I have to pay any fine?


username123 said:
Hmm, not sure I'd consider that the best deal. Have you entered your details into https://www.bonkers.ie/compare-mortgages/? This will show you best rates available. I entered your details and you can get Ulster 5 year fixed rate at 2.5% and you can get 2.65% from KBC with E3K cashback. Hence, depending on how much the cashback is both of those might work out cheaper.

Couple of questions:
  • How much are you borrowing?
  • Is this a new mortgage or a switcher?

Hidden:
  • PTSB do to treat existing customers the same as new customers
  • I dont think you can overpay on a TSB fixed rate (open to correction on that though). I see the independent has an article that says "With Permanent TSB, you can avoid break fees when overpaying a fixed rate mortgage - however, the overpayment is only applied as a credit on the account and doesn't come off the capital. A spokesman for the bank said the customer would still get "the interest rate benefit [as a result of the overpayment] in the background"."
Click to expand...
 
masterboy123 said:
Ulster is not providing cashback They were offering 1500 towards legal fees
Click to expand...
The 1500 is cashback, just not percentage based so you get less than with PTSB.

Their 2.6% over 4 years would be a good option - they let you overpay 10% of the balance each year without checking if a break fee applies.

With PTSB there might be a break fee, for the portion you overpay, but only if interbank rates don't increase before you overpay.

masterboy123 said:
AIB was pointing out to go for their variable rate as chances ar
Click to expand...
Its interesting to hear they might be indicating interest rates falling further. It could happen, but it's hard to know when.
 
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