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PTSB Tracker variable rate (ECB + maximum 1.68%) currently 5.43% - competitive?

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  • 05-12-2008 10:31am
    #1
    thejuggler
    Registered Users Posts: 857 ✭✭✭


    Looking for some advice here. I'm coming to the end of a two year fixed rate with Permanent TSB (fixed at 4.8%)

    As usual they have sent me a letter outlining my options which are as follows

    Tracker variable rate (ECB + maximum 1.68%) currently 5.43%
    2 or 5 year fixed 5.75%
    7 or 10 year fixed 6.1%

    To give you some background I am 6 years into a 30 year term. The mortgage amount was 156k (about 135k outstanding) and the LTV (depending on your valuation - similar houses were selling for 360k in 2006 - today who knows??) is under 50%

    I don't want to fix again as interest rates are still falling and I would hope to move at some point in the future so would like the flexibility.

    This tracker does not seem very competitive although I presume after yesterdays rate cut by the ECB it will be down to
    4.68%

    What should I do? Is there better value out there or should I ask PTSB for a standard variable rate or a better rate given my LTV?

    Hope to phone them later - just trying to figure out my best approach.


Comments

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    #2
    Moonbeam
    Moderators, Education Moderators, Society & Culture Moderators Posts: 18,953 Mod ✭✭✭✭Moonbeam


    Their tracker sounds a bit high to me,what is their variable rate?
    http://itsyourmoney.ie might be of help to you.


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    #3
    The Insider
    Registered Users Posts: 495 ✭✭The Insider


    Well considering the ECB rate is currently 2.5% that trackers should be 4.18%.


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    #4
    carlowguy32
    Closed Accounts Posts: 110 ✭✭carlowguy32


    The Insider wrote: »
    Well considering the ECB rate is currently 2.5% that trackers should be 4.18%.

    he got the letter yesterday so it was posted the day before so they might not be taken yesterdays fall into account, maybe a phone call is the best option


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    #5
    The Insider
    Registered Users Posts: 495 ✭✭The Insider


    Even so before yesterdays cut the ECB rate was at 3.25% meaning he should have being offered 5.18% which is still very poor. Before yesterdays cut I was paying 4.88% on a standard variable rate.

    If I was the OP I would look at moving your mortgage elsewhere.


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    #6
    Moonbeam
    Moderators, Education Moderators, Society & Culture Moderators Posts: 18,953 Mod ✭✭✭✭Moonbeam


    http://www.irishtimes.com/newspaper/breaking/2008/1205/breaking36.htm might be of help to you.


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    #7
    thejuggler
    Registered Users Posts: 857 ✭✭✭thejuggler


    Just spoke to PTSB and they wouldn't budge on the margin but said that the latest rate reduction would be applied on january 2nd. They said that they weren't offering trackers any more but they would honour the offer on the letter if I sent it back straight away.


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    #8
    Clairecluck
    Closed Accounts Posts: 95 ✭✭Clairecluck


    EBS currently stand at 4.13%


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    #9
    blast05
    Closed Accounts Posts: 256 ✭✭blast05


    Given that we can expect more interest rate cuts and also given that it seems less likely that banks will pass on future cuts unless the inter bank rate changes, then i would hold off on switching from the tracker just yet.
    Say if we see ECB rates go down to say 1.5% (much more likely at this juncture than even a month ago) and banks fail to pass on the rate cut to variable rate mortgages (and PTSB said as much today re future rate cuts so presumably others are in much the same both) then your 1.68% tracker will look a lot better then. If on the other hand, banks do pass on future rate cuts to variable rates then i would consider moving then.
    Or at least this is the approach i am taking on my home mortgage which is on the same PTSB tracker.....


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    #10
    spank_inferno
    Closed Accounts Posts: 3,892 ✭✭✭spank_inferno


    I know EBS dont offer a tracker anymore but I have one with them and am 2 years into my term.

    The margin they have is ECB base rate + 1.1%


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    #11
    Moonbeam
    Moderators, Education Moderators, Society & Culture Moderators Posts: 18,953 Mod ✭✭✭✭Moonbeam


    That was what they offered at one stage,before they stopped doing them it was a lot higher then that.


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    #12
    kluivert
    Registered Users Posts: 2,399 ✭✭✭kluivert


    I am in a similiar situation with PTSB but slightly different angle.

    I am 12 months into a 2 year fixed at 5.25%.

    I can switch to to a standard variable with no penalty so long as its within 20 days, Theres a 150e documentation fee to do this.

    The Standard Variable will be 4.65 (5.4 - .75) come January and I worked out that I would save around 85e a month over 12 months from Feb 09 to Jan 2010.

    But if I continue to stay fixed till Jan 2010 my loan agreement says that I will be transferred onto a Variable Tracker - which come Jan 09 will be (2.5 + 1.68) 4.18%.

    I can see the interest rates falling slightly more. Am only say 12 months into my mortgage.

    Do you think would be wiser to switch to Variable or wait for the Tracker Variable.

    PTSB said today that they cant confirm whether I will be tranferred over to Tracker Variable in Jan 2010. I need to ring there Mortgage Centre to get someone higher up to confirm it.

    Opinions appreciated thanks.


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