How to push TSB to offer better rates for existing mortgages????

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Tomairis wrote: »

Am I the only one to think that permanent TSB are a bunch of thieves?????

How can they offer a 2 years fixed rate at 5.25 for existing clients!!!!

Am I right to say that the ECB rate is 1% so that they borrow the money for 1% and lend it back to us for 5.25.

I have been told that it would be very difficult for us to switch our mortgage due to negative equity we may have on our apartment....

Is that really fair that a bank knowing that nearly no one will be able to switch their mortgage offers such horrific rate???

Is there anything we can do to get a better rate or are we definitely STUCK???

Thanks

+1

I am in the exact same situation. Coming off a 2 year fixed rate of 5.39% and in a negetive equity apartment. Received the depressing letter from PTSB today outling my 'options'.

Variable: 4.15%
2 yr Fixed: 5.25
5 yr Fixed 5.75%
7 & 10 yr both 6.1%
I also have the offer of an extortionate Tracker of 4.25% (3.25% + ECB 1%)

From every angle I feel trapped. The ECB's 1% is very short term so any increase will effect both the Variable and Tracker. The 2 year fixed rate is very expensive and again with ECB rates to increase an even higher fixed rate will be offered next time on expiry.

The sad truth is I am considering the 5 yr fixed on the basis of that it offers some stability even if I'll be eating beans on toast for the next 5 years to pay for it.

Oh and to add insult to injury the last line of the letter reads 'Thank you for your valued business'. Thieves is too good a word for them!

I honestly cant see anyway out.

The ECB may be 1%, but that's not how much it costs them. Some of your mortgage is financed from the markets, which are much higher than 1% at the moment. The rest of your mortgage is financed from deposits which, again are much higher than the 1%. Likewise, from an accounting perspective, some of your mortgage repayments are to cover defaults, which are also very high at the moment.

The fact of the matter is that, unfortunately, 5.25% is a lot closer to what they should be charging than the ridiculously low rates they offered during the boom to entice customers away from the other banks. During the middle years of the past decade, PTSB, along with the foreign banks, led the charge in giving out large mortgages at unsustainable rates as well as free ( i.e. loss-leading) banking in a bid to increase market share in a highly competitive environment.

Unfortunately, that leads to the second part of your post. As a huge proportion of their loan book was for mortgages drawn down during those years, and in many cases at 100% LTV or close to it, most of their customers are now in negative equity so are unable to switch. Sadly, this leaves you with little choice but to stick with them.

It's not just PTSB. The rates you see offered at the moment from the banks can be mapped out to their actions in the personal mortgage market during the boom. The banks that had the best teaser offers and loosest lending criteria (PTSB, Halifax, NIB, Irish Nationwide etc) are now the ones offering the customers who are stuck with them (by far) the higher rates. AIB, BOI and ESB, who came late to the party, and were more reactive to the lending environment than proactive, are the ones currently offering the best rates and are still open to new customers.

You can hate them if you want. Personally, I believe the regulator, and especially the media, were the ones most at fault.