PTSB Split mortgages

vicwatson

The warehoused portion of these mortgages - do you pay interest only on that portion?

If people’s circumstances improve is the assumption that the warehoused portion is just added to the other portion, which interest and capital was being paid, without penalty ?

duffman13

vicwatson wrote: »

The warehoused portion of these mortgages - do you pay interest only on that portion?

If people’s circumstances improve is the assumption that the warehoused portion is just added to the other portion, which interest and capital was being paid, without penalty ?

Warehoused as far as I'm aware is doing nothing. You don't pay interest on it, it just sits there till such a point someone's circumstances improve or not as the case may be.

Tbh when the long term treatments were handed out, PTSB didn't really expect they would be able to do much with the warehouse amount and were just in a rush due to central bank pressure to get people on to long term treatments. The economy has changed massively so I'm sure the thoughts around the warehoused amounts have changed

vicwatson

duffman13 wrote: »

Warehoused as far as I'm aware is doing nothing. You don't pay interest on it, it just sits there till such a point someone's circumstances improve or not as the case may be.

Tbh when the long term treatments were handed out, PTSB didn't really expect they would be able to do much with the warehouse amount and were just in a rush due to central bank pressure to get people on to long term treatments. The economy has changed massively so I'm sure the thoughts around the warehoused amounts have changed

Warehoused being different to an “interest only” portion? Is the assumption correct that a warehoused part is deemed a write off (hardly)? Why didn’t they just offer interest only on that part? Seems like the bank are suffering by offering a free warehoused portion ? Or was it based on future ability to pay? Not all banks offered free warehousing did they?

bigroad

vicwatson wrote: »

Warehoused being different to an “interest only” portion? Is the assumption correct that a warehoused part is deemed a write off (hardly)? Why didn’t they just offer interest only on that part? Seems like the bank are suffering by offering a free warehoused portion ? Or was it based on future ability to pay? Not all banks offered free warehousing did they?

As far as I can remember I think it was only ptsb who didn't charge interest on the warehoused part.

duffman13

vicwatson wrote: »

Warehoused being different to an “interest only” portion? Is the assumption correct that a warehoused part is deemed a write off (hardly)? Why didn’t they just offer interest only on that part? Seems like the bank are suffering by offering a free warehoused portion ? Or was it based on future ability to pay? Not all banks offered free warehousing did they?

I'm limited in how much detail but put it this way, the the time of these warehouse splits PTSB were trying to stay afloat. The warehouse as offered by PTSB was a great deal for those who engaged with the bank. Internally the bank felt there was little to no hope of recouping the warehouse amount however with the change in the market I'd say that's changed dramatically.

Some of the splits were a 3 year review basis and some were much longer term

vicwatson

All very interesting cheers, didn’t the taxpayer buy into PTSB?

duffman13

vicwatson wrote: »

All very interesting cheers, didn’t the taxpayer buy into PTSB?

They did, they own it for the most part. Pressure forced them down the split route. Much in the same way they are being pushed towards the mass sell off now as a result. Interesting time for the bank.

vicwatson

So the state helped some more than others in these circumstances