Important Regulatory Information


Please see below for Important Information relating to Home Loan Mortgage Repayment Difficulties 

Variable Rate Loans

The payment rates on this housing loan may be adjusted by the lender from time to time.

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Endowment Home Loans

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

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Interest-Only Mortgages

Warning: The entire amount that you have borrowed will still be outstanding at the end of the interest-only period.

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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


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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.

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Unpaid Direct Debit Charges

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).

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Estimate of costs for legal proceedings

In an event where repossession proceedings would commence and are not defended by you, then it is estimated that the costs and outlays incurred will amount to approximately €4,500.00 - €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 and if awarded will be charged to your mortgage account and will be payable by you. It is estimated that the costs and outlays incurred in respect of such proceedings will amount to approximately €13,000.00. 

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