The payment rates on this housing loan may be adjusted by the lender from time to time.
The early surrender of the Insurance Policy in respect of your Endowment Loan may result in a return to you which would be less than you have paid in premia and other charges.
Warning: There is no guarantee that the proceeds of the insurance policy will be sufficient to repay the loan in full when it becomes due for repayment
Warning: The entire amount that you have borrowed will still be outstanding at the end of the interest-only period.
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
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 permanent tsb branch for further information.
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.
A charge of €10 may be applied to your account for unpaid Direct Debits, if you don’t co-operate with the Bank under Mortgage Arrears Resolution Process (MARP).
In an event where repossession proceedings commence and are not defended by you, then it is estimated that the costs and outlays incurred will amount to approximately €6,500.00.
In the event of proceedings being defended and/or adjourned on a number of occasions and/or if the proceedings are deemed complex and/or in the event of any appeal or applications for an extension of stay on any order made, additional costs will be incurred. It is estimated that the costs and outlays incurred in respect of such proceedings will amount to approximately €13,000.00.
The cost of any proceedings will be charged to your mortgage account and will be payable by you, unless otherwise ordered by the Court.