Tracker or LTV or move to other bank??

flatpack

sorry if this was asked and answered before.

i received letter from TSB about my mortgage rate option. i was on ecb+.99 for first 2 years and now its ending in this month and now rates on letter are not really nice number.

Tracker variable Rate* 3.25%
LTV variable rate 3.15%
2 year fix 5.25%
5 year fix 5.75%
7 year fix 6.10%
10 year fix 6.10%

*The interest rate that applies to this tracker mortgage loan will never be more then 2.25% over the ECB.

now about fixing it for 2, 5, 7 or even 10 years with this % is crazy and i think i have right to call it ripoff as tsb know i can not go anywhere but accept what they offer me.

and very nice thing letter is dated 12th June and i have to answer until 03 July.
now my question can i move to other bank? how easy it is and is there cost involved???
sorry being very stup!d.:o

ferga_com

Roughly how much do you owe now and what's the current value of your home? That will be a big factor in whether or not you can switch.

flatpack

balance is 270 and house worth now about 230

ferga_com wrote: »

Roughly how much do you owe now and what's the current value of your home? That will be a big factor in whether or not you can switch.

ferga_com

Sorry but because you're currently in negative equity (you owe more than the value), you won't be able to switch to another lender.

If you're considering one of the varieble rates from PTSB, I'd suggest the tracker variable rate. It's only a small bit dearer but it affords you the security of knowing that PTSB can't unilaterally increase your repayments whenever they like, which they can do with the LTV variable. They can only increase whenever the European Central Bank (ECB) does so. Also, if the ECB drops rates, they must pass on the drop when you're on a tracker. They might or might not if you're on the LTV variable.

stepbar

Those rates stink, how in ever you have no choice TBH (unless you get lucky and the bank finds someone stupid enough to value your house at +300k). Even at that I don't this they would find it credible, so you're stuck where you are for the moment.

flatpack

so banks found the way to to get over this recession and make lots of money, :mad:
some one in my office told me that i should have written somewhere in my papers what rates they'll offer me once discount periods is over but i can not find it anywhere.

ferga_com

flatpack wrote: »

some one in my office told me that i should have written somewhere in my papers what rates they'll offer me once discount periods is over but i can not find it anywhere.

On your formal loan offer, it should have indicated what tracker rate you'd have available once your discount period expires. Your loan offer would not have stated what fixed rate options would be available.

Worth checking the loan offer to make sure that they're not making a mistake in offering you a tracker of ECB + 2.25%. If you don't still have a copy of your loan offer, your solicitor may well have. Failing that, Permanent TSB themselves may be able to send you a copy of the original loan offer. Worth checking.

flatpack

thanks m8 , i looked in loan offer pages but can not find anything in them, i'll ring to my solicitor tomorrow to get copy.

ferga_com wrote: »

On your formal loan offer, it should have indicated what tracker rate you'd have available once your discount period expires. Your loan offer would not have stated what fixed rate options would be available.

Worth checking the loan offer to make sure that they're not making a mistake in offering you a tracker of ECB + 2.25%. If you don't still have a copy of your loan offer, your solicitor may well have. Failing that, Permanent TSB themselves may be able to send you a copy of the original loan offer. Worth checking.