PTSB reducing mortgage interest rates

Sunrise_Sunset

This ad popped up when I was online yesterday saying PTSB are reducing their mortgage interest rates for both new and existing mortgages. The fixed part of my mortgage is currently 3.2%, going by this it's decreasing to 3%.
Anyone else heard anything about this?
https://www.permanenttsb.ie/mortgages/mortgage-interest-rates/

Sarn

You wont be able to switch to the new rate until your fixed rate ends. You might be able to end the term early (with or without a fee).

Sunrise_Sunset

Sarn wrote: »

You wont be able to switch to the new rate until your fixed rate ends. You might be able to end the term early (with or without a fee).

For flip sake.
4 years left on ours.

Q&A

Sunrise_Sunset wrote: »

For flip sake.
4 years left on ours.

Contact them and see how much it will cost you to break your current fixed rate. Might be with it

Sunrise_Sunset

Q&A wrote: »

Contact them and see how much it will cost you to break your current fixed rate. Might be with it

I emailed the in house mortgage advisor we dealt with last year. Will see what she comes back with. The fixed part of our mortgage is not huge and the bulk of it is tracker.

zefer

Sarn wrote: »

You wont be able to switch to the new rate until your fixed rate ends. You might be able to end the term early (with or without a fee).

Don't think this is correct, they are reducing their rates for all customers. I got letter last week about it telling me my rate is being reduced

Sarn

zefer wrote: »

Don't think this is correct, they are reducing their rates for all customers. I got letter last week about it telling me my rate is being reduced

Are you on a variable rate? If so, then you’ll be getting a reduction.

The whole purpose of a fixed rate is that it remains unchanged for the duration of the term, regardless if the rate goes up or down.

What the article on it says is that they used to offer a different rate for existing customers compared to new customers. New customers had more favourable rates. Now both old and new customers will have the same choice of fixed rates when changing rates.

As mentioned above, you can ask them to see what the break fee is to get out of the remaining term. It can vary from nothing to several thousand euro to get out of it.

KBC better. Avant card will soften up the market more. Dont fix until they enter the market.

Sunrise_Sunset

For those interested, this is the reply from my local branch;

The rate won’t automatically be reduced but if you contact the mortgage department they will be able to advise you on how to change the rate. There may be a penalty for you to switch from your current fixed rate to another fixed rate but they’ll be able to advise you over the phone if a penalty will apply & how much that could be

Decka

Just over 3 years left on my fixed rate of 3.2% and I was told break out fee would be €900. The rate reduction I was offered was fix again for 2 years at 3.1% fix again for 3 years at 2.95% or fix again for 5 years at 3%. It hardly seems worth it for the fee they are asking!

StefanFal

Sunrise_Sunset wrote: »

For those interested, this is the reply from my local branch;

The rate won’t automatically be reduced but if you contact the mortgage department they will be able to advise you on how to change the rate. There may be a penalty for you to switch from your current fixed rate to another fixed rate but they’ll be able to advise you over the phone if a penalty will apply & how much that could be

Does this apply to variable too? You have to contact them to avail of a reduction?

Sunrise_Sunset

Decka wrote: »

Just over 3 years left on my fixed rate of 3.2% and I was told break out fee would be €900. The rate reduction I was offered was fix again for 2 years at 3.1% fix again for 3 years at 2.95% or fix again for 5 years at 3%. It hardly seems worth it for the fee they are asking!

I rang PTSB mortgages today and they gave me the same rates. Said they'll send me out all of the information by post in the next few days. She couldn't advise me of the break fee but said it would be detailed in the letter they'll send. If it's 900 quid it's definitely not worth it for me either.

BigAl81

Sunrise_Sunset wrote:

I rang PTSB mortgages today and they gave me the same rates. Said they'll send me out all of the information by post in the next few days. She couldn't advise me of the break fee but said it would be detailed in the letter they'll send. If it's 900 quid it's definitely not worth it for me either.

I did the same last year and when the letter arrived the break fee was zero!! Happy switching!

Sunrise_Sunset

BigAl81 wrote: »

I did the same last year and when the letter arrived the break fee was zero!! Happy switching!

Good to know. I hope my letter says the same

I'm about a month away from drawdown and got a letter today saying the 3 year fixed rate has increased from 2.9 to 2.95 as of January.

silver2020

Sunrise_Sunset wrote: »

Good to know. I hope my letter says the same

Unlikely. There's a specific formula they use that involve a "Cost of funds rate" That was quite stable for a couple of years meaning that to break out of fixed rate was mostly zero or very little.

Cost of funds rate has dropped a fair bit over the past few months - its one of the reasons rates have fallen.

As the cost of funds at the time you fixed was probably about 0.3%-0.4% higher than they are now, it will cost you this difference and I would suspect the €900 is right. That would equate to about €100,000 - €120,000 of a fixed rate amount over 3 years

3.2% is not a bad rate. The difference per €100,000 based on about 17 years left (guessing this - but if you have a part tracker, it is probably from 2007 ish) is €10 a month. Not worth getting concerned about

BigAl81

silver2020 wrote:

Unlikely. There's a specific formula they use that involve a "Cost of funds rate"

Cost of funds is negative, the letter from PTSB will say zero, I have one

Sunrise_Sunset

I'll report back once received.

The fixed portion of my mortgage is fairly small and granted the difference between 3.2 - 3% might be small but if I can get it for "free" without a break fee then happy days

BigAl81

Or break and switch away completely and get free cash back with the next bank

silver2020

BigAl81 wrote: »

Or break and switch away completely and get free cash back with the next bank

and lose his tracker on the larger part of his mortgage?

silver2020

BigAl81 wrote: »

Cost of funds is negative, the letter from PTSB will say zero, I have one

yep, and when they fixed the op's rate the cost of funds was probably 0.4%, so the difference is what they work on and that leads to a fee

BigAl81

silver2020 wrote:

and lose his tracker on the larger part of his mortgage?

Ops, missed that part, hang on to that obviously!!

Sunrise_Sunset

They are considered 2 separate mortgages. Can I move the fixed part to another bank? The fixed part is small, I don't know if another bank would be bothered taking it on.

silver2020

Sunrise_Sunset wrote: »

They are considered 2 separate mortgages. Can I move the fixed part to another bank? The fixed part is small, I don't know if another bank would be bothered taking it on.

No, no bank will take a "share" in an asset. Imagine is you stopped paying one and they went for repossession - what would the other bank do?

Its such a negligible saving that the time cost of the effort is simply not worth it.

Sunrise_Sunset

silver2020 wrote: »

No, no bank will take a "share" in an asset. Imagine is you stopped paying one and they went for repossession - what would the other bank do?

Its such a negligible saving that the time cost of the effort is simply not worth it.

That makes sense.
I make overpayments on it, but it sits on the account as credit, and when the fixed term is up I can then use the credit to make a payment off the principle, but that'll take time.
I make overpayments on the tracker too but that's a much easier process, because I can use the credit off the principle anytime I want.

Sunrise_Sunset

Just reporting back as I got the letter from PTSB. No break fee!
We can also choose how long we want to fix it for, and the 3 year option is 2.95%. Trying to decide between this and the 5 yr at 3%.

jayjay2010

Sunrise_Sunset wrote: »

Just reporting back as I got the letter from PTSB. No break fee!
We can also choose how long we want to fix it for, and the 3 year option is 2.95%. Trying to decide between this and the 5 yr at 3%.

Hey Sunrise Sunset, just curious if you made a decision yet? My renewal is due in Oct, I can't decide wether to go with 3Y or 5Y or wait for Avant to enter the market with potential lower rates. Decisions, decisions!

Sheep Shagger

jayjay2010 wrote: »

Hey Sunrise Sunset, just curious if you made a decision yet? My renewal is due in Oct, I can't decide wether to go with 3Y or 5Y or wait for Avant to enter the market with potential lower rates. Decisions, decisions!

I'd be very suprised if Advent are competitive against main stream lenders in the mortgage market, to date their credit card business is for customers other banks don't target.

Geuze

jayjay2010 wrote: »

Hey Sunrise Sunset, just curious if you made a decision yet? My renewal is due in Oct, I can't decide wether to go with 3Y or 5Y or wait for Avant to enter the market with potential lower rates. Decisions, decisions!

About Avant, read this:

https://www.askaboutmoney.com/threads/avantcard-to-target-high-earners-only.219519/#post-1679829

silver2020

Sheep Shagger wrote: »

I'd be very suprised if Advent are competitive against main stream lenders in the mortgage market, to date their credit card business is for customers other banks don't target.

Bankinter bought them about 18 months ago, so you'll see changes as they ramp up their offerings

Geuze wrote: »

About Avant, read this:

https://www.askaboutmoney.com/threads/avantcard-to-target-high-earners-only.219519/#post-1679829

That's the initial steps. I would suspect it will be next year before they target a wider market. But I can see them only offering max 80% which is more the norm in Europe.

Interesting to see if they have 10-15 year fix options

Sunrise_Sunset

jayjay2010 wrote: »

Hey Sunrise Sunset, just curious if you made a decision yet? My renewal is due in Oct, I can't decide wether to go with 3Y or 5Y or wait for Avant to enter the market with potential lower rates. Decisions, decisions!

We went with 5yr fixed at 3%. Returned the form today.

We don't have the option of changing to another mortgage provider as we'd lose the tracker rate on the larger portion of our mortgage.