Important Regulatory Information - Mortgages

Outlined below is important regulatory information on our mortgage products. If you need more information just call us or drop into your local branch.

Lending criteria, terms & conditions will apply. Mortgage approval is subject to assessment of suitability and affordability. Applicants must be aged 18 or over. Security is required and credit agreement will be secured by a mortgage or by a right related to residential immovable property. Life and Home Insurance are also required.

For First Time and Second Time Buyers a maximum Loan to Value (LTV) of 90% will apply to a property’s purchase price. The maximum LTV for customers who hold their current mortgage with another bank but wish to switch their mortgage to PTSB while also releasing equity is 85%. Maximum loan amount will typically not exceed 4 times an individual’s gross income for First time Buyers & 3.5 times an individual’s gross income for Second time Buyers.

The monthly repayment on a 20 year mortgage with Loan to Value (LTV) greater than 80% with variable borrowing rate of 4.70% on mortgage of €100,000 is €643.50 for 240 months. Total amount repayable is €154,799.06. If interest rates increase by 1% an additional €55.73 would be payable per month. For this example, Annual Percentage Rate of Charge (APRC) of 4.84% applies and consists of variable borrowing rate of 4.70%, valuation fee of €150, Property Registration Authority (PRA) fee of €175, and security vacate fee of €35. Please note – this APRC does not factor in the €8 monthly fee for maintaining the Explore Account. 

Warning: The cost of your monthly repayments may increase – if you do not keep up repayments you may lose your home.

Information correct as of 29/01/2024 but is subject to change.

Variable Rate Loans

For First Time and Second Time Buyers a maximum Loan to Value (LTV) of 90% will apply to a property’s purchase price. The maximum LTV for customers who hold their current mortgage with another bank but wish to switch their mortgage to PTSB while also releasing equity is 85%. For customers who are in negative equity and want to trade up i.e. where the total loan amount will increase, a maximum LTV of 125% applies. For customers who are in negative equity and want to trade down i.e. where the total loan amount will decrease, a maximum (LTV) of 175% applies subject to a maximum loan amount of €550,000.

Lending levels are subject to a total monthly repayment commitment typically not exceeding 35% of disposable income. However, this percentage will vary depending on the individual circumstances.

Variable rates may be adjusted by PTSB from time to time. Rates correct as of 17/01/2024 but are subject to change. Here are two examples:

• The monthly repayment on a 20 year tracker interest rate mortgage of €100,000 (Annual Percentage Rate of 1.66%) is €489.47. In the event that interest rates increase by 1% an additional €44.77 would be payable per month.
• The monthly repayment on a 20 year variable interest rate mortgage of €100,000 (Annual Percentage Rate of 4.5%) is €629.95. In the event that interest rates increase by 1% an additional €55.12 would be payable per month.

Information is correct as of 17/01/2024.

Fixed Rate Early Repayment Breakage Fee

Whenever (i) repayment of a loan in full or in part is made or (ii) with the agreement of PTSB, the loan is switched to a variable rate loan or other fixed rate loan, before expiry of the Fixed Rate period (hereinafter called the “Early Termination”), the applicant shall, in addition to all other sums payable as a condition of and at the time of the Early Termination, pay a sum equal to the PTSB’s estimate of the loss (if any) arising from the Early Termination. In the calculation of the said loss, PTSB shall endeavour to apply in so far as it is fair and practicable.

This is how the fee is calculated;

C = (I-S) x R x (M-T)/12

“C” is the charge to compensate for the loss (if greater than 0)

“I” is the swap/market fixed interest rate for the term of the Fixed Rate Period at the date of its commencement

“S” is the swap/market interest rate for the remaining fixed period

“R*” is the amount of the Fixed Rate loan balance paid or switched at the date of Early Termination

“M” is the fixed Rate Period (in months)

“T” is the time expired of the Fixed Rate Period at the date of Early Termination (in months)

Here is a worked example; “I” = 5%, “S” = 3%, “R” = €100,000, “M” = 24 months, “T” = 12 months

C = (5%-3%) x €100,000 x (24-12) / 12

So, C = 2% x €100,000 x 12 / 12

C = €2,000

R* = For the purposes of the above Fixed rate mortgage breakage fee worked example, a fixed balance of €100,000 representing the loan balance to be paid or switched at the date of Early Termination is used for “R”. In the actual calculation of the fixed rate mortgage breakage fee payable to the Bank, a reducing loan balance approach is used to calculate “R”. This approach is used to take into account the fact that, after the switch or Early Termination, the loan balance typically reduces due to scheduled repayments for the remainder of the fixed rate period. The fee calculated using a reducing balance approach will always be lower than the fee calculated using a fixed balance approach. Please contact your local PTSB branch for further information.

Arrears

Arrears are any element of a mortgage repayment that have not been made and remain outstanding. Interest at the mortgage rate will be applied to the outstanding balance of your loan which includes any payments missed. This may result in increased cost of credit.

Home Insurance and Life Assurance

One of the requirements for your mortgage approval is to arrange home insurance and life assurance for your new home. The cost of home insurance and life assurance will depend on the customer’s individual assessment and circumstances. This policy can be obtained from a provider other than PTSB.

PTSB home insurance is underwritten by Allianz plc. PTSB is appointed as a Single Agency Intermediary of Allianz plc for Home Insurance. Allianz plc is regulated by the Central Bank of Ireland.

Life cover is provided by Irish Assurance plc. PTSB is a tied assurance agent for Irish Life Assurance plc (Irish Life). Irish Life Assurance plc is regulated by the Central Bank of Ireland.

Fees and Charges

Some fees and charges may be applied during your mortgage application process and/or during the term of your mortgage. These include legal fees, stamp duty and property valuation fees.

Legal Fees

You will need a solicitor to act on your behalf when buying your new home. You will also need one if you are selling a property. There’s no set fee for handling the purchase or sale of a property, so check out the professional fees, outlays and property registration fees applicable with yours. The Law Society of Ireland (www.lawsociety.ie) is a useful resource if you need a solicitor.

Property Valuation

If you get mortgage approval from PTSB we will need a property valuation. The valuation needs to be completed by a PTSB approved valuer and you can contact us to arrange the valuation. You must pay a valuation fee, which will be a maximum of €150, which is inclusive of VAT but excludes valuer’s travel expenses. Final valuations: Properties incomplete at the time of the original valuation will require, on completion, a final valuation, the fee for which is €75.00 which includes VAT but excludes travel expenses. In the event that PTSB declines your loan application the valuer’s fee will be refunded. A subsequent valuation will be required if your mortgage issues greater than two months after your valuation was initially completed.

Stamp Duty

This is a tax charged by the government on the purchase of a property. To learn more about stamp duty visit www.revenue.ie. Stamp duty is not payable on the sale of a property.

For more information please refer to the mortgage section of our Fees and Charges brochure.