Query on Cashback offer with PTSB

[MortgageQuery]

We have gone sale agreed and our broker never renewed our AIP. We are franticly trying to get our AIP but the broker is pushing PTSB. The broker keeps referring to how their interest rate with the cashback is best. We can avail of the 3 year fixed green rating interest rate of 4.05% with 7.4k cashback and the LTV is 373k. Alternatively Haven are offering a 4 year green fixed rating of 3.45%. By my math's (which is not my expertise) I calculate that the monthly repayments may be better with PSTB given we would use the cashback for these monthly repayments over 36 months.

PTSB					Haven
Year	Loan	Interest	Capital		Year	Loan	Interest	Capital
1	€373,000	€15,010	€5,210		1	€373,000	€12,776	€5,873
2	€367,790	€14,795	€5,425		2	€367,127	€12,570	€6,079
3	€362,364	€14,572	€5,649		3	€361,049	€12,357	€6,292

Any advice or guidance would be so greatly appreciated.

 

[Brendan Burgess]

So you are taking out a three year mortgage?

Very unusual.

Most mortgages are for 20 or even 30 years.

And Haven will be a lot cheaper than ptsb over that length.

But as yours is only a three year mortgage, your maths is (probably) correct.

Oh, I have just noticed that you are not paying off all the capital in three years!

Brendan

 

[MortgageQuery]

So you are taking out a three year mortgage?

Very unusual.

Most mortgages are for 20 or even 30 years.

And Haven will be a lot cheaper than ptsb over that length.

But as yours is only a three year mortgage, your maths is (probably) correct.

Oh, I have just noticed that you are not paying off all the capital in three years!

Brendan

In my sheer panic I didn't clarify apologies.

It's a 34 year mortgage but the fixed rate is for 3 years with PTSB at the higher interest rate (4.05%). The option with Haven is 3.45% interest rate fixed for 4 years.

Ideally if interest rates come down in 2025 we will switch to a provider with a lower rate but unsure if we're doing the right financial option by going with the cashback offer with PTSB with a higher interest rate or should play it safe with Haven and the 3.45%.

Claire

 

[Brendan Burgess]

Ideally if interest rates come down in 2025 we will switch to a provider with a lower rate

That is how ptsb exploits its customers. And how the brokers cooperate in the exploitation.

You think you will switch. But in reality, most people do not switch and end up paying the high rate for 34 years.

And even if you are organised enough to switch, you might not be able to

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