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tracker mortgage @1.6%

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  • 06-06-2013 3:42pm
    #1
    transam
    Registered Users Posts: 94 ✭✭


    just got a letter from ptsb with the new repayment , so the interest rate went down (we where on 1.85%) to 1.6% and repayment droped by only 10euro , outstanding amount on the mortgage is just over 200k , i thought it was something like 15euro per 100k borrowed if the rate dropped by 0.25% ???


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    #2
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    "...for a typical mortgage..." The remaining term will have an impact as well.

    Paying off a 200k mortgage with 20 years remaining will mean that your monthly repayment has a much higher proportion of interest than the same loan over 10 years (and vice versa) and therefore the impact of a rate reduction will be greater (and vice versa)


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    #3
    transam
    Registered Users Posts: 94 ✭✭transam


    we have 27years left...


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    #4
    murphaph
    Registered Users Posts: 19,020 ✭✭✭✭murphaph


    Sounds incorrect to me.


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    #5
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    At 1.6% on full P&I that would equate to 760 per month

    At 1.85%, it equates to 785 per month

    so I would agree with you, sounds incorrect

    Are you coming out of Tax Relief?


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    #6
    transam
    Registered Users Posts: 94 ✭✭transam


    our repayment was 642 (including trs , and we are not coming out of tax relief until 2017) and the new repayment @1.6% is 631 PM
    could that be correct ?? or ptsb is just taking a chance ???


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    #7
    rameire
    Registered Users Posts: 4,152 ✭✭✭rameire


    what date did ptsb change the rate on your mortgage,
    could it have been a mid month rate change,
    thus meaning for a full month of the new rate the payment will be less again.

    =-pmt(rate/12, term in months, balance )

    use the above in excel to get your payments.

    🌞 3.8kwp, 🌞 Split 2.28S, 1.52E. 🌞 Clonee, Dub.🌞



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    #8
    NinjaTruncs
    Registered Users Posts: 2,491 ✭✭✭NinjaTruncs


    TRS shouldn't matter, the bank should be stating the actual mortgage repayment amount not the amount - TRS.

    4.3kWp South facing PV System. South Dublin



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    #9
    transam
    Registered Users Posts: 94 ✭✭transam


    the date interest rate is being changed is may 31 , i do think something is not right here


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    #10
    murphaph
    Registered Users Posts: 19,020 ✭✭✭✭murphaph


    Just for comparison I have a 60k outstanding balance on a tracker (11 years to run on that) and with the latest reduction my repayment dropped €8 pm. So €10 seems way off for your (much larger) mortgage which would have a much larger interest component at this stage.


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