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Permanent TSB and mortgage overpayment

  • 17-02-2024 3:24pm
    #1
    heartofwhite
    Registered Users, Registered Users 2 Posts: 526 ✭✭✭


    Hi Folks,

    Currently half-way through a fixed rate mortgage with PTSB.

    Remaining mortgage amount - 100,000

    Monthly repayment - 1200

    Simple question but cannot seem to get a straight answer from the bank -

    Firstly, can I lodge money into the mortgage account randomly and it will be flagged as a prepayment. For arguements sake, say there is 1000 lodged.

    Secondly, will the monthly interest then be calculated on the remaining mortgage - prepayment balance? So 100,000 - 1,000 = 99,000 for interest calculation purposes.

    Thirdly, can I then instruct the bank to apply this 1000 off the 100,000 at any point by filling out the lump sum form and returning?

    As we are on a fixed rate, will there be any penalties applied and are they actually enforced?

    Any advice appreciated!



Comments

  • #2
    FlipFlopAgain
    Registered Users, Registered Users 2 Posts: 21 ✭FlipFlopAgain


    I don't know about fixed rates. I previously had a variable rate mortgage with PTSB.

    With a variable rate mortgage, you can indeed randomly lodge money into the account. Your monthly repayments stay the same. I.e. the lodgement is used to reduce the term of the mortgage. You'll see on your statement that the monthly payment is the same, but the amount used to pay back interest has decreased and the amount used to pay back the capital as correspondingly increased.

    I switched from PTSB to AIB several years ago, as at that time, AIB had cheaper variable rates and were offering cash back to switchers. Not sure if the above facility is still available for PTSB variable rate mortgages. And I've no idea about fixed rate mortgages.



  • #3
    CuriousCucumber
    Registered Users, Registered Users 2 Posts: 356 ✭✭CuriousCucumber


    My mortgage moved from UB to PTSB last year. I had been overpaying with UB, and spoke to PTSB about it at the time.

    What I was advised, and what doesn't answer all of your questions, is I need to complete a form and post it to their mortgage department each time I wanted to overpay, and reduce it from the principal.

    I just put the money aside every month, for 12 months, and then did a lump transfer on to my mortgage account. A few days later, I rang them, and they confirmed the value of additional money that was sitting in my mortgage account

    At this point it's worth nothing, the money was doing nothing. It wasn't impacting my mortgage balance, or reducing my interest. I THINK, if I had missed a subsequent payment, the money would have come from this money


    Anyway, once I confirmed the balance, I completed the form, and advised I wanted the value to come off of the principal of the mortgage. A few days, the value of my mortgage dropped by the value listed.


    As far as I know, there isn't a limit on how much you can overpay with PTSB on a fixed mortgage. Definitely, there was no issue in overpaying up to 10%


    The form is called: Flexible Mortgage Options, but is listed under a section called "Former Ulster Bank mortgage customers"



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