Important Regulatory Information - Mortgages


What’s all this? Check out some important regulatory information on our products. If you need more details, call us or drop into your local branch

Costs associated with taking out the mortgage

There are costs associated with taking out the mortgage. We offer an annuity mortgage, otherwise known as a repayment mortgage, which means that you pay monthly repayment instalments that consist of capital and interest charged on this capital, over the term of your mortgage.

Your Annual Percentage Rate of Charge (APRC) is an interest rate applied on a mortgage and will reflect all cost of a mortgage, on an annualised basis. APRC takes into account borrowing rate charged by the lender and also costs/ charges known to the lender at the time when credit agreement is issued. You will see those in a representative repayment example below.

There are however other costs associated with taking out the mortgage that are not included in APRC calculation, namely:

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.

Buy-To-Let Mortgages

A bank solicitor is required, for all Buy-to-Let mortgages, for loan amounts greater than €75,000. The amount payable, for a standard Buy-to-Let mortgage, is €1,000 plus 23% VAT and outlay. This amount is payable by the Borrower(s) and must be paid directly to the banks solicitor prior to the release of the loan cheque. The amount payable by the Borrower(s) is in addition to the borrower(s) solicitor fees.

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

Property Valuation

If you get mortgage approval from permanent tsb we will need a property valuation. The valuation needs to be completed by a permanent tsb approved valuer and you can contact us to arrange the valuation. You must pay a valuation fee, which will be a maximum of €130, 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 €65.00 which includes VAT but excludes travel expenses. In the event that permanent tsb 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.

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 permanent tsb.

Fixed Rate Early Repayment breakage fee

Warning: You may have to pay charges if you pay off a fixed-rate loan early.

Whenever (i) repayment of a loan in full or in part is made or (ii) with the agreement of permanent tsb, 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 permanent tsb’s estimate of the loss (if any) arising from the Early Termination. In the calculation of the said loss, permanent tsb 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

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.

Warning: If you do not keep up your repayments you may lose your home.

WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT

Warning: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.

Important notices

Variable rate credit:

Warning: The cost of your monthly repayments may increase.

WARNING: THE PAYMENT RATES ON THIS HOUSING LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME

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 Buyers, a maximum Loan to Value (LTV) of 90% will apply for the first €220,000 of a property’s purchase price, with a maximum LTV of 80% for all amounts greater than this. For Second Time Buyers a maximum LTV of 80% will apply. The maximum LTV for customers who hold their current mortgage with another bank but wish to switch their mortgage to permanent tsb while also releasing equity is 80%. Maximum loan amount will typically not exceed 3.5 times an individual’s gross annual income. The monthly repayment on a 20 year mortgage with variable borrowing rate of 4.20% for a loan greater than 80% Loan to Value (LTV) on mortgage of €100,000 is €616.57 for 240 months. Total amount repayable is €147,976.80. If the APRC does not vary during the term of the mortgage, the total cost of credit, i.e. total amount repayable less the total amount of credit would be €47,976.80. If interest rates increase by 1% an additional €54.48 would be payable per month. For this example, Annual Percentage Rate of Charge (APRC) of 4.32% applies and consists of variable borrowing rate of 4.20%, valuation fee of €130, Property Registration Authority (PRA) fee of €175, and security vacate fee of €35. Information correct as of 21/03/2016 but is subject to change.

Calls may be recorded for training and quality purposes.

Home Insurance options are arranged by permanent tsb p.l.c. and underwritten by Allianz p.l.c. permanent tsb is appointed as a Single Agency Intermediary of Allianz p.l.c. for Home Insurance. Allianz p.l.c. (trading as Allianz) is regulated by the Central Bank of Ireland.

permanent tsb is a tied life assurance agent with Irish Life Assurance p.l.c. (Irish Life).

Irish Life Assurance p.l.c. is regulated by the Central Bank of Ireland.

permanent tsb has appointed Irish Life Financial Services Limited (ILFS) to provide the financial advice process. Irish Life Financial Services Limited is regulated by the Central Bank of Ireland.

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