 RTE News at One, PTsb mortgage bonus scheme, 14th November 2011
We were interviewed by John Finnerty on RTE News at One about potential changes to the way banks in particular PTsb would deal with their tracker mortgage loan books. Permanent TSB in the past has given bonuses of c. 10% to people who paid off lump sums in units of €5000 meaning that if you paid off for instance €10000 on your tracker mortgage that they would give an additional €1000 capital reduction. This is possibly being expanded and may be revised upwards to 20-30% but will come with re-pricing of the loan as well. In order to determine if this is good value on your mortgage it will be necessary to see the final plan, as yet nothing has been formally announced. What is certain however, is that tracker mortgages are a drag on banks and eventually they will either slowly realise the loss which most banks prefer to do or they will address it with capital reserves such as PTsb is likely to do. Our understanding is that he bonus will only apply to the overpayment portion as opposed to it being calculated on the gross debt, so only those with particularly high savings are likely to go for it - especially as it will likely involve a repri cing. We are grateful that RTE chose Irish Mortgage Brokers for their financial commentary, and we hope you like the piece You can find our website at www.mortgagebrokers.ie our blog is at http and our financial advice and accountancy/audit site is at www.advisors.ie
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