Permanent TSB's offer for tracker customers

Zamboni

http://www.rte.ie/news/2011/0418/ilp-business.html

Permanent TSB customers who make additional payments to their tracker mortgage accounts of €5,000 (or multiples of €5,000) will receive bonus payments of 10% from the bank on their payments.

Is it a straightforward 10% bonus on the additional repayment?
I.e if I pay €5,000 above my normal repayment, PTSB knock an additional €500 off my mortgage?

Thanks

evolving_doors

Seems to be as simple as 5,500 off the loan amount Zamboni

Just did a few calculations on loanclc.com by reducing the loan amt by 5,500
Seems its the same old chestnut of the value of money today versus considering the long term of the mortgage

e.g. in my case if i availed of the 5500euro offer now it would save me 8000 over the term of the mortgage (reducing my monthly payments by 32eur)

but then again if i held on to the 5000 and left it on deposit, and , increased my monthly payments instead by 100 euro, the final term would come sooner and cost me less in todays moneys terms, whilst also accruing interest on that 5000.

I think it may make more sense if you are close to the end of the term and had about 20,000 to spare, (then you'd get an extra 2000 from the TSB), rather than at the start of a mortgage term in which case the chances of having 5,000 to spare with a 'newish' house and possibly kids are not that great,,

It's probably an obvious statement but the offer is a very good deal for the bank if they're stuck for a bit of hard cash.

chris85

Thats a good deal to me. it helps both parties on the matter. With the losses the bank are making its more beneficial to have a lower principle balance and the customer has the advantage of getting extra extra 10% off their payment in and also saves on not being charged interest on it.