Can PTSB move me off my interest-only mortgage?

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Bank rules - Regulators point to long-term benefits

Q. I have a buy-to-let mortgage paying interest only with Permanent TSB. They have told me they want me to pay capital plus interest or stay on interest only but only if I pay an extra 1% interest. Are they within their rights or is this legal to do this?

Seamus, Wexford

A. Permanent TSB contracts have special conditions which allow them, at their own discretion, change the terms of your mortgage.
Special Condition clause number 7, which I reproduce for you here, gives Permanent TSB the discretion to change people from interest-only to capital repayment mortgages.

Clause 7: ‚ÄúPermanent tsb reserves the right to review the deferral of the repayment of principal at any time during the term of the loan, including the first three years of the term and may require the applicant to cease the interest-only repayment an drequire th repayment of principal and interest and the applicant will immediately arrange to pay the revised monthly repayment comprising the repayment of principal and interest calculated over the remaining term so that the principal and interest will be discharged within the existing term of the loan.”

It looks as if Permanent TSB are within their rights to do so. However a group of people in a similar situation to you are challenging the bank and solicitor Walter Odlum is hoping to take a test case to the High Court.

For more details check out this story

Tracker mortgage holders to challenge PTSB


About Michael Lisovski

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2 Responses to Can PTSB move me off my interest-only mortgage?

  1. James M says:

    The PTSB have already moved me to capital repayment but they said I could keep my tracker rate. It is hard at first to see your payments go up much but at the end of the day you still have to pay off the capital so as long as I can afford it I think it’s a good idea that I do that, rather than postpone the day I have to find a lump sum. The apartment I bought in the IFSC is never going to make its money back to I might as well pace the loss over the next 15 to 20 years ..

  2. Gerry says:

    I have a PTSB tracker mortgage and I've been through everything with them and with my lawyer – they have every right to terminate your tracker and worse, then can do it when they like.

    Should have checked the small print. Suppose even if we did, none of us ever thought house prices would crash like they have…

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