PTSB MVR vs SVR mortgage question

konline

Hi, I have a situation, I hope someone else will be there like me.
My mortgage is on 4.25% SVR and my house is in negative equity. I was offered to move to their new MVR @ 4.3% (i,e 4.5% - 0.2%). So this is clearly no use to me and I cannot move to any other bank. I called PTSB customer service and explained the situation, they said they cannot do anything.
Like many other banks PTSB should have reduced SVR but instead they came up with this new plan which is clearly is not helping me. I have sent an email to the Minister Mr.Noonan and my local TD over a week ago but no reply from either.
Is there anyone in my situation? I would really appreciate if anyone has any idea for my situation. Thank you.

Henry42

I have a similar situation but a different question.

I'm on the 4.5% SVR at the moment and can move to the 4.3% MVR with this offer.

If I do so, what is the possibility that my rate will remain at 4.3% and that the SVR will be reduced in the coming months/years, thus leaving me in a situation of paying more by switching than I would by staying put?

tommyboy2222

Henry42 wrote: »

I have a similar situation but a different question.

I'm on the 4.5% SVR at the moment and can move to the 4.3% MVR with this offer.

If I do so, what is the possibility that my rate will remain at 4.3% and that the SVR will be reduced in the coming months/years, thus leaving me in a situation of paying more by switching than I would by staying put?

That is my fear as well. The SVR rate comes down but I'm stuck on the MVR. Would not surprise me at some stage in the future they lower the SVR to a rate lower than the highest MVR (currently 4.3%) for the PR or possibly political/public pressure.

My other options are Fixed 2 year at 7.5% or Fixed 5 year at 8.75% which are no options at all.

As for the OP, you're on your own. Noonan pussied out of putting any pressure on the banks and is happy for PTSB to gouge SVR customers. His advice to move to a different lender is useless in your case as you know.

homer911

Henry42 wrote: »

I have a similar situation but a different question.

I'm on the 4.5% SVR at the moment and can move to the 4.3% MVR with this offer.

If I do so, what is the possibility that my rate will remain at 4.3% and that the SVR will be reduced in the coming months/years, thus leaving me in a situation of paying more by switching than I would by staying put?

By asking that question, you dont understand why PTSB introduced the MVR in the first place - its because they refused to lower the SVR when requested by Minister Noonan. There is zero likelihood of PTSB lowering the SVR below the highest MVR - Many of those on SVR are in negative equity, consequently a higher risk and consequently pay a higher rate.

Risk-based pricing is long overdue in the Irish housing market imo. All the industry "watchdogs" like Brendan Burgess (askaboutmoney.ie) agree that you have nothing to lose if you qualify for it

tommyboy2222

homer911 wrote: »

By asking that question, you dont understand why PTSB introduced the MVR in the first place - its because they refused to lower the SVR when requested by Minister Noonan. There is zero likelihood of PTSB lowering the SVR below the highest MVR - Many of those on SVR are in negative equity, consequently a higher risk and consequently pay a higher rate.

Risk-based pricing is long overdue in the Irish housing market imo. All the industry "watchdogs" like Brendan Burgess (askaboutmoney.ie) agree that you have nothing to lose if you qualify for it

In that case why are they not getting rid of the SVR and just use MVR's based on LTV ?

Henry42

homer911 wrote: »

By asking that question, you dont understand why PTSB introduced the MVR in the first place - its because they refused to lower the SVR when requested by Minister Noonan. There is zero likelihood of PTSB lowering the SVR below the highest MVR - Many of those on SVR are in negative equity, consequently a higher risk and consequently pay a higher rate.

Risk-based pricing is long overdue in the Irish housing market imo. All the industry "watchdogs" like Brendan Burgess (askaboutmoney.ie) agree that you have nothing to lose if you qualify for it

Have they not offered the MVR to all of their SVR customers then? On what basis did they decide who to make the offer to?

I'm in negative equity too, so it isn't just that.

homer911

tommyboy2222 wrote: »

In that case why are they not getting rid of the SVR and just use MVR's based on LTV ?

Probably because on the same sliding MVR scale, to be equitable, those in negative equity would pay a rate higher than the SVR, but I'm only guessing..

homer911

Henry42 wrote: »

Have they not offered the MVR to all of their SVR customers then? On what basis did they decide who to make the offer to?

I'm in negative equity too, so it isn't just that.

On what basis did you determine you are eligible? I've tried using the online calculator and even if my mortage is double my property value its telling me I qualify, but this doesnt seem possible

tommyboy2222

homer911 wrote: »

Probably because on the same sliding MVR scale, to be equitable, those in negative equity would pay a rate higher than the SVR, but I'm only guessing..

No , those in NE pay the same as those with 90% LTV (4.3%).

I'm just not sure what the point is of the PTSB SVR now.

Also Brendan Burgess is not infallible.

From Sept 2008 : Brendan Burgess: "I think we are going to look back in a few years time at the state of the Irish banks and the Irish stockmarket generally and say how did we not fill our boots with those shares."

Henry42

homer911 wrote: »

On what basis did you determine you are eligible? I've tried using the online calculator and even if my mortage is double my property value its telling me I qualify, but this doesnt seem possible

On the basis that they sent me a letter and it says that I am, subject to the valuation.

wicklowway1

similar to everyone who has posted above i am on the LVR at present at 4.5% it appears i can have the mvr for 4.3%.
However upon signing the T&C's state - no further switch will be permitted(save to a fixed interest rate where available) so my question is like everyone else given that i have a very lengthy number of years left on the mortgage and the T&C state i cant return to a variable rate could i potentially get locked into an arrangement which in time offers higher rates and no out. Yes i'm in Neg. equity and purchased in the height of the boom.
appreciate advise.

Dubwick777

I am in a similar situation,i am very skeptical of this offer and i dont like the idea that you cannot switch back to svr if you want to,i wonder are there any other clauses in this deal,i know that on an svr you can over pay your mortgage as much as you like but on a fixed you cant,where does an mvr stand?