fixed to variable... no more with PTSB

elchanco

Hi,

I rang PTSB today to discuss my options of going from 2yrs fixed 5.7% to a variable rate! I was told that PTSB will no longer "allow" customers the ability to come off a fixed rate???

They wouldnt even discuss my options! Im struggling to keep up with my debts but the bank was'nt interested???

Anyone else experience this?

IsThatSo?

From the number of threads posted here on this issue alone I suspect the number of people wanting to change/querying the change is massive. It could boil down to a staff time issue and all the extra work its causing.

A contract is a contract, and thats what a fixed rate mortgage is, a contract to pay a certain rate for x number of years. However, you can escape it, with a breakage fee, and I am not sure if they are within their rights to refuse to quote you the breakage fee.

Did you ask them why they won't allow it?

PaulVF

On 5th Feb 2009 I contacted Permanent TSB and spoke to a
girl called <snip> on the "Mortgage Helpline" to request how much it
would cost to come out of my fixed rate mortgage and go to the
variable rate. I was told that I had 20 days to transfer and there
would be no cost. <snip> informed me that I would be saving approx.
€200.00 per month. That evening I sent the request off in writing.
As I had not received a confirmation (today) 19th Feb I contacted PTSB
again where I was told that my request would not be applied because
the board decided to block all requests as of 16th Feb 2009 including
pending requests. I spoke to <snip> in Customer Relations who said that
there was nothing that I could do and that yes (his words) it was
probably unfair and unethical but that it was legal and that's the way
it is.
So much for the banks being willing to help the customer even though
its our taxes that help them out. So much for the bank giving 20 days
to complete your request. They didn't give 1. I understand they may
need to change their policies from time to time but it should at least
not be for files/letter received and pending. Basically they have
given me €200.00 a month and taken it straight back.

What a disgrace.

elchanco

its a disgrace...

ill be changing banks asap when my fixed rate term is over! How long are you fixed for?

kaiser sauze

PaulVF wrote: »

On 5th Feb 2009 I contacted Permanent TSB and spoke to a
girl called <snip> on the "Mortgage Helpline" to request how much it
would cost to come out of my fixed rate mortgage and go to the
variable rate. I was told that I had 20 days to transfer and there
would be no cost. <snip> informed me that I would be saving approx.
€200.00 per month. That evening I sent the request off in writing.
As I had not received a confirmation (today) 19th Feb I contacted PTSB
again where I was told that my request would not be applied because
the board decided to block all requests as of 16th Feb 2009 including
pending requests. I spoke to <snip> in Customer Relations who said that
there was nothing that I could do and that yes (his words) it was
probably unfair and unethical but that it was legal and that's the way
it is.
So much for the banks being willing to help the customer even though
its our taxes that help them out. So much for the bank giving 20 days
to complete your request. They didn't give 1. I understand they may
need to change their policies from time to time but it should at least
not be for files/letter received and pending. Basically they have
given me €200.00 a month and taken it straight back.

What a disgrace.

elchanco wrote: »

its a disgrace...

ill be changing banks asap when my fixed rate term is over! How long are you fixed for?

There is usually a fee for breaking a fixed rate mortgage; have you both been told that 'under no circumstances' can you change your mortgage?

elchanco

i was told that they were not even negotiating it! I understand that i would have to pay a fine but they would not even discuss it...?

PaulVF

Yea, Fixed for another 4 years. I dont know if changing banks will do any good I think they are all the same. Waiting for my formal letter from PTSB and the I will escalate to regulator. I contacted all the papers but got no reply.

kaiser sauze

elchanco wrote: »

i was told that they were not even negotiating it! I understand that i would have to pay a fine but they would not even discuss it...?

Sounds like (another) case of poor customer service. Ooh, what a surprise!

PaulVF wrote: »

Yea, Fixed for another 4 years. I dont know if changing banks will do any good I think they are all the same. Waiting for my formal letter from PTSB and the I will escalate to regulator. I contacted all the papers but got no reply.

I know this is boring advice, but you are both going to have to read your acceptance proposal, that you would have signed in the presence of a solicitor. [You should have been issued a copy]

Each proposal for a mortgage has different terms for it and there is no point in anyone hazarding a guess as to what it may, or may not, contain.

It is, however, really likely that there are fees discussed to 'break' the term, but you will need to read it.

Paul, be prepared for a large fee to break yours-assuming there is one-, if you have the option at all.

rapture 3

Same thing happened me today,customer service (my arse),they are the worst bank iv ever delt with before in my life,no explaination why i couldnt change back to variable just mumbo jumbo.Like every other bank they just dont give a flying F***.But i am glad i found out what this bank is like now,so in future i will never deal with them again,and for anyone trying to find out what your options are with your mortgage,you be better off ringing BOSCO:mad: muppets.

PaulVF

One week on from my last contact with PTSB and I'm still waiting on the letter to say I was refused (they said it was in the post). Once I get this I will take it through the formal PTSB complaint procedure and then on to the Regulator. I will let you know how I get on.

Show_me_Safety

rapture 3 and PaulVF,

it's now possible to change to variable from today, if you were told no penalty then it'll be honoured.

no point going to regulator, they were consulted and approved, and the action was agreeable with them.

rapture 3,
don't give out about the staff, dont shoot the messenger.

no explanation was given to the staff, and different information was been given everyday.

PaulVF

Show me Safety you are absolutly correct, I received a letter in the post this morning granting me the transfer at no cost, saving me €183 per month on my repayments. I don't know why this was done but I am very greatful.

If you are an employee of PTSB please pass on my thanks to your colleagues, I know they were at the brunt of people high emotions.

To eveyone else I wish you the best of luck.:D

gmchugh

Hi,

I think, like most of you I think that it is a disgrace that we, the public are being forced to pay for the
greed that the banks fuelled with 100% mortgages and the like.
I fixed my mortgage about a year ago when the interest rates were quite high as I knew that if they went
any higher that I could not afford my mortgage repayments.
Quite a responsible action on my behalf I think.
However now as the interest rates creep toward zero I am looking to reduce my mortgage repayments
to a more affordable level especially as my salary is going to be reduced with increased taxes on the way,
it will be tough financially.
When I phoned permanent TSB I was told that it would cost me €11,000.00 to go back to a variable rate!!
If I had that kind of money there wouldn't be a problem.
I would imagine that there are a lot of people in my position and the bank will deal with us all individually
and try to fleece more money from us, its disgusting.
In these harsh times and given that Permanent TSB are corrupt to the core (the little matter of the €4 Billion
transaction into Anglo to make the balance look better) I think the government should force the banks to allow
people go back to variable rate for free, God knows we've paid enough!!!
I think people should get together and threaten the banks that they will move their mortgage to another
bank in large numbers unless they agree to this, maybe then they would listen, probably not.
The internet would be a good platform to launch this lobby group from.
One rule for them, one for us, its a disgrace.
We must be responsible adults while they behave like irresponsible criminals, why do we roll over and take it?

Sleipnir

gmchugh wrote: »

Hi,

I fixed my mortgage about a year ago when the interest rates were quite high as I knew that if they went
any higher that I could not afford my mortgage repayments.
Quite a responsible action on my behalf I think.
However now as the interest rates creep toward zero I am looking to reduce my mortgage repayments
to a more affordable level especially as my salary is going to be reduced with increased taxes on the way,

So, you think going fixed was responsible and it's great if interest rates keep going up but if they drop, you should be able to get out of it?
Did you not wonder what would happen if rates dropped? Did you fully expect to be able to just drop out of the fixed term? Fixed rates are over a particular term for a reason.

I can understand the frustration but it's not the bank's fault that you decided to go to a fixed rate and this has worked against you subsequently. Who knew???

delop

Variable rate might see like a good Idea, it should knock at least 1% off what your paying, but Im with Ulster bank on a variable rate and they Pissed and moaned about every rate reduction and are not passing on this one....

BuffyBot

We must be responsible adults

Responsible adults know that when they gamble, sometimes they will lose. In your case, you gambled, and you lost. The bank isn't at fault. Interest rates go down and up. You pitched your lot at a certain price, and and now the market is different, you've lost out.

It's not a nice place to be in, to be sure, but to blame the bank is a little on the rich side. Expecting them to release you from your choice is a little unrealistic side. If the shoe was on the other foot, and you fixed at a low rate, but rates went higher, I'm pretty confident you would complaining about the bank coming and saying "we want to break out agreement with you".

IsThatSo?

BuffyBot wrote: »

Responsible adults know that when they gamble, sometimes they will lose. In your case, you gambled, and you lost. The bank isn't at fault. Interest rates go down and up. You pitched your lot at a certain price, and and now the market is different, you've lost out.

It's not a nice place to be in, to be sure, but to blame the bank is a little on the rich side. Expecting them to release you from your choice is a little unrealistic side. If the shoe was on the other foot, and you fixed at a low rate, but rates went higher, I'm pretty confident you would complaining about the bank coming and saying "we want to break out agreement with you".

+1, well said Buffybot.

Gmchugh, you signed a contract and are bound by it. You applied for the mortgage, you requested the contract to fix. Why is it the banks fault that they lent you money? you asked for the money!!!

You made choices, you will have to be a "responsible adult" and deal with them and not blame others for your choice/decisions.

rapture 3

agree with gmchugh 100%.shower of bankers:mad:

dotsman

A lot of misdirected anger here.

But anyway, PTSB had to stop allowing people break their contract due to an issue with their systems. Apparently, for a while, the formula their system was using was incorrect and charging people very small figures for breaking their contracts (which is what changing from a fixed to a variable is). After they noticed this they pulled the plug and stopped all breakages until the system was updated (I'm not sure if it is up and running yet).

All people who were grossly undercharged will be let off. Anybody who applies to break their contract after the system is repaired will receive the fair and accurate charge.

Hardly criminal actions now is it?

gmchugh

Sleipnir wrote: »

So, you think going fixed was responsible and it's great if interest rates keep going up but if they drop, you should be able to get out of it?
Did you not wonder what would happen if rates dropped? Did you fully expect to be able to just drop out of the fixed term? Fixed rates are over a particular term for a reason.

I can understand the frustration but it's not the bank's fault that you decided to go to a fixed rate and this has worked against you subsequently. Who knew???

I am not disputing that I entered into a contract to fix my mortgage interest rate for a fixed period of time, my signature on the dotted line testifies to this. I have disclosed this information
voluntarily, this was my decision, if you re-read what I wrote you should
extract a similar meaning from the text.
I am simply pointing out the hypocrisy of those in power manifest in the fact that there is one rule of accountability for the borrower and a completely different rule of accountability for the lender.
I am accountable for my decisions and yet the corrupt institution
that moves billions of euro around as it sees fit to actively decieve the
financial regualtor does not have to be accountable to anyone.
Tax that you and I have earned is being used as we write to keep these institutions in existence. Are you not angry about this situation?

BuffyBot

Tax that you and I have earned is being used as we write to keep these institutions in existence. Are you not angry about this situation?

People can be. Elsewhere. This is a forum about Banking/Insurance/Pension products, services and providers

If you want to discuss the various shenanigans behind the scenes, then use one of the more appropriate places.

Blackjack

gmchugh wrote: »

Tax that you and I have earned is being used as we write to keep these institutions in existence. Are you not angry about this situation?

Please specify what Tax money is being used to keep PTSB in existence?.

I'm not aware of PTSB being involved in any re-Capitalisation exercise with funds from the National Pensions Reserve Fund.