Should I take advantage of PTSB 10% bonus?

D

Daisy09

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Brendan, should I do this in my situation? Have outstanding mortgage of 340k, property value around 250k, 31 years left. ECB plus .8%.
 
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I have discussed my views at length in this thread: PTSB Mortgage holders to get 10pc bonus for paying lump sum off trackers: I suggest that you read it in full as it gives both sides of the argument about negative equity mortgages.

Cannot afford to pay neg equity

...

(2 strong incomes).
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If you have such strong incomes, you should be looking to eliminate your negative equity as quickly as possible before considering buying another house.

Taking on another mortgage would mean that you are overborrowed.

If you need to move in three years, then rent and keep your home as an investment property. With a cheap tracker, it might well be a good long term investment.

If I was in your shoes, I would take advantage of this offer and pay down the mortgage as much as possible. Keep saving and pay off as much as possible before the deadline. It might be worth borrowing from friends short term to pay off more.

If you are determined to expose yourself to further borrowing in three years time, then you should not take advantage of this deal. You will need as much savings as possible to have a good deposit.

By the way, I would not be as confident as your broker, that you will be able to get a mortgage in three years' time, while you still have substantial negative equity on another property.
 
Daisy09 said:
at present we qualify for the 'reluctant investor' mortgage. .
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Is there a specific product called this?

I am not the only one in my position with this query so no harm in having this post, even if it has been discussed at length before.
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The other thread is quite different but the ideas are the same. It's to do with overborrowing and negative equity.

Your question is different, especially in the context of the PTSB offer announced today.
 
Hi.

I am with KBC and am very interested in hearing more about this 'reluctant investor' mortgage. I moved out of my house last year and am renting it out as I needed to subsidise the mortgage with rent coming in. The moved me onto a Residential Investment Rate which added an additional €100 to my monthly repayment. Is this 'reluctant investor mortgage' a brand new mortgage or a different rate?
 
I spoke to someone in KBC and there is no product as such. They just agree to treat it as a residential investment and to charge you a higher rate, as the terms and conditions say they are entitled to.
 
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