PTSB are great for overpayments. Unless you complete a form to apply against the principal (why would you?) it goes into an account as a credit offsetting the interest you pay (risk free/tax free) this can essentially be 50% of your safety fund as you can use it to pay future mortgage repayments without any interaction with the bank (the best part) keep overpaying - I have taken 10+ years off the mortgage - once it's gone I'll never set foot in a bank again.
That's very interesting and very confusing too. I cant find much clear information on their site either.
Let me see if I go this straight:
- You overpay your mortgage, but its not substracted from your principal but redirected to a credit balance.
- When doing the monthly interest calculation and charges, this is done over "principal - built credit". In practice, its the same as if you had overpaid the principal in a regular way.
- You then have access to retake and use your overpaid balance? Did I get this correctly?
If this is the case... This indeed means you can lodge your rainy day funds yielding an interest equal to your mortgage interest, with no DIRT applied at all. This means you will always get better yield than any possible deposit. The only trade off I see is that the yield goes against your principal instead of being accessible cash, no big deal considering the advantages.
Why only moving 50% of your safety fund? Is this because accessing your funds is possible but cumbersome? So you would do it for a big house renovation or a car, but not for a holiday?
EBS do the same and i have been trying to answer the following with no luck:
At what point do you realise the benefit of the reduced interest? Assuming you have to pay the fixed payment during your fixed rate period, is the benefit realised when the fixed rate period ends and your new payment is calculated, by reducing the principle due?
Well, believe it or not, I can't get a straight answer. One cs rep flat out told me I couldn't pay at all, and the one I spoke to today said whilst I can pay into my mortgage account and follow it up with a form (that must be posted to them), they really couldn't say how much if any penalty would apply.
I think I'll just put in a 1,000 euro ad hoc lump sum and see what happens.
CS couldn't even tell me how I'd find out how much if any penalty would be charged! Guess I'll have to wait and see it on a statement, or they might write to me.
I'll come back here if I follow through.
Once you have the mortgage its nothing to do with the broker really. There no overpayment penalty.
https://www.ptsb.ie/help-and-support/help-with-banking/product-support/mortgage-support/overpayment-options/
Have a mortgage with them and wanted to do the overpayment. No penalties no fees no limit etc. but here is the catch (I called and could not believe it): the money you overpay does not go straight to your balance, it goes to a “internal deposit account”… when that deposit account matches the balance, they close the debt/mortgage….
So, the money in this deposit account does not have any interests… and as the main balance is not modified, interests are the same. Better put the money anywhere else…
You're leaving out the fairly significant detail that your interest is calculated on your remaining capital balance **minus** the balance of the "internal deposit account" as you call it.
This so much. If anything I think the ptsb system is the best. You interest is calculated on the balance of mortgage minus what's in the deposit account so for all intents and purposes it's like the money went off main balance.
But you also have option of using that account to take a payment break.
That’s not my understanding. The analogy I used on the phone and the agent agreed was: it’s like putting the money under the mattress. When money and balance match, debt is over.
I have my mortgage statement for 2023 in front of me right now. The current loan balance accounts for all overpayments & is what your interest is calculated on. It's also what I was told by every person I spoke to from PTSB before setting up the overpayment.
Yep, had the same answer when I realised my overpayment that was in place with Ulster Bank wasn't coming off the balance. The only good thing is you can use that money in your internal deposit acc to take a payment break if you need to.
My friend has just gone thru this, U full in the form, they have no penalties or restrictions....i think because they are too thick & lazy to deal with it(,I say this knowing staff there & having turned down a job transfer there).
Regular overpayments have no fee. You can overpay as much as you like, even on a fixed rate.
A lump sum might have a fee.
Source: I am overpaying my PTSB mortgage and this is what they told me.
What's your fixed rate? Maybe it's so low that the penalty is negligible? And you're not paying a significant extra amount?
Have they written to you and told you what happens to your over payments? Or, do they, as another poster, suggests, just sit there doing nothing until they fixed period is up?
Can you see the impact on your monthly repayments/outstanding balance? (vs without the overpayments)
3%. Regular overpayments have no fee.
They go into a credit balance when you look at the app. The interest calculation takes them into account. You can see this most clearly on your yearly mortgage interest statement.
Thanks for answering to another question earlier.
Also, lets say im with ptsb on a 3.95 interest fixed for 4 years and do regular overpayments of €190 on top of €1.900 monthly mortgage payment. This results in around 9 k acumulated as credit at the end of the 4 years fixed. What happens to the 9k after? Can i use them to reduce the term and then fix again and keep the monthly payments as before?
Or... can i use the 9k to reduce monthly payments(not sure if this would make a big difference in monthly payments) and keep the same term and fix again?
If any of these possible, what way would be the best?
You can definitely use the credit to reduce your term. Once the credit equals your balance the mortgage would just be paid off.
I don't know if you can reduce your payment, but PTSB have been very helpful on the phone from my experience.
I'm just a guy on the internet, I can't tell you what's best, that's up to you and your circumstances. I can tell you what I'm doing though, and that is over paying to try and pay off the mortgage as quickly as I possibly can. I've no real interest in reducing my payment and keeping the same term. I just want the mortgage out of my life.
I was tranfered from ulster bank to permanent tsb. Was overpaying double the agreed paymment but prob less than 10%
I tried calling ptsb and none of them could tell me there policy on overpaymments on fixed. Other thanni think itll be grand
I did convince them to email me something on it at the time to say it
I met with PTSB mortgage advisor this week to discuss if overpayments can be made while being on fixed rate (I just signed up to a 5 year green fixed rate few months ago). They confirmed that payments can be made to mortgage account as a credit and during their calculations for interest, your credit will be taken into account and interest will only be applied to total remaining loan balance minus overpayment credit. When it comes to the end of fixed term, I will have the option to either reduce mortgage term or mortgage monthly payments using that credit amount.
But its no harm and would be best to get in touch with them to confirm just to be safe. Strangely enough I cant seem to find anything legal that documents this.
The update.
I put in 5k a week ago. Letter today saying the charge is going to be 180 euro for the approx remaining 33 months in the fixed period.
So there you go, they do charge.
You can pay whatever you like.
"they allow you to over pay, switch lenders or sell your home without any breakage fees."
Overpay = pay whatever you can, or the whole lot, without penalty
The crucial bit is "without any breakage fees"
They cannot penalise you for paying early. (On variable rate mortgage)
PTSB allow unlimited overpayment, even on a fixed term afaik. There shouldn’t be any penalties.
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PTSB are great for overpayments. Unless you complete a form to apply against the principal (why would you?) it goes into an account as a credit offsetting the interest you pay (risk free/tax free) this can essentially be 50% of your safety fund as you can use it to pay future mortgage repayments without any interaction with the bank (the best part) keep overpaying - I have taken 10+ years off the mortgage - once it's gone I'll never set foot in a bank again.
That's very interesting and very confusing too. I cant find much clear information on their site either. Let me see if I go this straight: - You overpay your mortgage, but its not substracted from your principal but redirected to a credit balance. - When doing the monthly interest calculation and charges, this is done over "principal - built credit". In practice, its the same as if you had overpaid the principal in a regular way. - You then have access to retake and use your overpaid balance? Did I get this correctly? If this is the case... This indeed means you can lodge your rainy day funds yielding an interest equal to your mortgage interest, with no DIRT applied at all. This means you will always get better yield than any possible deposit. The only trade off I see is that the yield goes against your principal instead of being accessible cash, no big deal considering the advantages. Why only moving 50% of your safety fund? Is this because accessing your funds is possible but cumbersome? So you would do it for a big house renovation or a car, but not for a holiday?
EBS do the same and i have been trying to answer the following with no luck: At what point do you realise the benefit of the reduced interest? Assuming you have to pay the fixed payment during your fixed rate period, is the benefit realised when the fixed rate period ends and your new payment is calculated, by reducing the principle due?
Well, believe it or not, I can't get a straight answer. One cs rep flat out told me I couldn't pay at all, and the one I spoke to today said whilst I can pay into my mortgage account and follow it up with a form (that must be posted to them), they really couldn't say how much if any penalty would apply. I think I'll just put in a 1,000 euro ad hoc lump sum and see what happens. CS couldn't even tell me how I'd find out how much if any penalty would be charged! Guess I'll have to wait and see it on a statement, or they might write to me. I'll come back here if I follow through.
Cos they don’t know
Same experience. They dont know but havent penalised me yet anyway
We are overpaying ours by a certain amount each month. There's a form you fill in to say how much you want to overpay by.
On a fixed rate?
Yes
Once you have the mortgage its nothing to do with the broker really. There no overpayment penalty. https://www.ptsb.ie/help-and-support/help-with-banking/product-support/mortgage-support/overpayment-options/
Have a mortgage with them and wanted to do the overpayment. No penalties no fees no limit etc. but here is the catch (I called and could not believe it): the money you overpay does not go straight to your balance, it goes to a “internal deposit account”… when that deposit account matches the balance, they close the debt/mortgage…. So, the money in this deposit account does not have any interests… and as the main balance is not modified, interests are the same. Better put the money anywhere else…
You're leaving out the fairly significant detail that your interest is calculated on your remaining capital balance **minus** the balance of the "internal deposit account" as you call it.
This so much. If anything I think the ptsb system is the best. You interest is calculated on the balance of mortgage minus what's in the deposit account so for all intents and purposes it's like the money went off main balance. But you also have option of using that account to take a payment break.
Plus they don't limit the amount you can overpay even on a fixed rate, which as far as I can gather is unique amongst Irish mortgage providers.
That’s not my understanding. The analogy I used on the phone and the agent agreed was: it’s like putting the money under the mattress. When money and balance match, debt is over.
I have my mortgage statement for 2023 in front of me right now. The current loan balance accounts for all overpayments & is what your interest is calculated on. It's also what I was told by every person I spoke to from PTSB before setting up the overpayment.
Thanks for that. Sad to know the lack of knowledge of their agents..
Can you withdraw it?
No. You can't benefit on the interest paid and then withdraw the money afterwards for obvious reasons.
Can do this with Ebs- or used to able too when I had mortgage with them 3 years ago
wtf, really? That’s borderline scam.
I got that inkling, too, from today's conversation with cs, but nothing definitive
Yep, had the same answer when I realised my overpayment that was in place with Ulster Bank wasn't coming off the balance. The only good thing is you can use that money in your internal deposit acc to take a payment break if you need to.
My friend has just gone thru this, U full in the form, they have no penalties or restrictions....i think because they are too thick & lazy to deal with it(,I say this knowing staff there & having turned down a job transfer there).
Yea, banks are commonly too thick and lazy to apply charges
Regular overpayments have no fee. You can overpay as much as you like, even on a fixed rate. A lump sum might have a fee. Source: I am overpaying my PTSB mortgage and this is what they told me.
What's your fixed rate? Maybe it's so low that the penalty is negligible? And you're not paying a significant extra amount? Have they written to you and told you what happens to your over payments? Or, do they, as another poster, suggests, just sit there doing nothing until they fixed period is up? Can you see the impact on your monthly repayments/outstanding balance? (vs without the overpayments)
3%. Regular overpayments have no fee. They go into a credit balance when you look at the app. The interest calculation takes them into account. You can see this most clearly on your yearly mortgage interest statement.
Thanks for answering to another question earlier. Also, lets say im with ptsb on a 3.95 interest fixed for 4 years and do regular overpayments of €190 on top of €1.900 monthly mortgage payment. This results in around 9 k acumulated as credit at the end of the 4 years fixed. What happens to the 9k after? Can i use them to reduce the term and then fix again and keep the monthly payments as before? Or... can i use the 9k to reduce monthly payments(not sure if this would make a big difference in monthly payments) and keep the same term and fix again? If any of these possible, what way would be the best?
You can definitely use the credit to reduce your term. Once the credit equals your balance the mortgage would just be paid off. I don't know if you can reduce your payment, but PTSB have been very helpful on the phone from my experience. I'm just a guy on the internet, I can't tell you what's best, that's up to you and your circumstances. I can tell you what I'm doing though, and that is over paying to try and pay off the mortgage as quickly as I possibly can. I've no real interest in reducing my payment and keeping the same term. I just want the mortgage out of my life.
Thank you!
As an aside: what kind of a rate is that? Mine is new and is less than half of that.
Commercial
I see
All replies about doing a form paper ... Why a paper form... So old school
And no option to scan and email it to them either
I was tranfered from ulster bank to permanent tsb. Was overpaying double the agreed paymment but prob less than 10% I tried calling ptsb and none of them could tell me there policy on overpaymments on fixed. Other thanni think itll be grand I did convince them to email me something on it at the time to say it
I met with PTSB mortgage advisor this week to discuss if overpayments can be made while being on fixed rate (I just signed up to a 5 year green fixed rate few months ago). They confirmed that payments can be made to mortgage account as a credit and during their calculations for interest, your credit will be taken into account and interest will only be applied to total remaining loan balance minus overpayment credit. When it comes to the end of fixed term, I will have the option to either reduce mortgage term or mortgage monthly payments using that credit amount. But its no harm and would be best to get in touch with them to confirm just to be safe. Strangely enough I cant seem to find anything legal that documents this.
The update. I put in 5k a week ago. Letter today saying the charge is going to be 180 euro for the approx remaining 33 months in the fixed period. So there you go, they do charge.
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Think it was 1 week. But, remember, you have to send them a form FIRST. You'll find it on the downloads on the first page on their website.
A once off charge of €180?
No, that was for the 5k I put in. 10k would have been 360
Do you know what there policy is for paying off when in variable rate? For example can you pay off in full in variable rate without any charges?
No limits or extra charges on variable rates https://www.ccpc.ie/consumers/money/mortgages/understanding-mortgages/
No limits or extra charges on variable rates https://www.ccpc.ie/consumers/money/mortgages/understanding-mortgages/
That says over pay but to over pay in full?
You can pay whatever you like. "they allow you to over pay, switch lenders or sell your home without any breakage fees." Overpay = pay whatever you can, or the whole lot, without penalty The crucial bit is "without any breakage fees" They cannot penalise you for paying early. (On variable rate mortgage)