If you're facing difficulties with your Home Loan Mortgage repayments, the following information is essential to understand.
Section 134 (2) of the Consumer Credit Act 1995 requires the Bank to provide you with an estimate of the legal costs in relation to any potential repossession proceedings (if repossession proceedings have not already commenced) regarding your property. This estimate also includes the legal costs incurred by the Bank in relation to the preparation of any repossession proceedings.
If repossession proceedings are not defended by you, it is estimated that the legal costs and outlays incurred by the Bank, from the time that an external legal services provider is appointed by the Bank until the time when a property is taken into possession by the Bank, will amount to approximately €8,000.
In the event that repossession proceedings are, for example, defended and/or adjourned on a number of occasions and/or if the repossession proceedings are complex and/or in the event of any appeal or court applications for an extension of a stay on any order made, additional legal costs will be incurred by the Bank.
It is estimated that the legal costs and outlays incurred by the Bank in relation to such matters, from the time that an external legal services provider is appointed by the Bank until the time when a property is taken into possession by the Bank, will amount to approximately €16,500.
In the event that certain specific events happen, i.e. when an alternative repayment arrangement/settlement is agreed with you, when a Court determines that legal costs must be paid by you or when your mortgage is redeemed, some/all of the estimated costs noted above become due for payment by you depending on the circumstances of your case. No interest will be charged in relation to these costs.
Costs associated with the possession, marketing and sale include but are not limited to:
In the event that certain specific events happen, i.e. when an alternative repayment arrangement/settlement is agreed with you, when a Court determines that legal costs must be paid by you, or when your mortgage is redeemed, some/all of the estimated costs noted above become due for payment by you depending on the circumstances of your case. No interest will be charged in relation to these costs.
A charge of €10 may be applied to your account for unpaid Direct Debits if you don’t co-operate with the Bank under the Mortgage Arrears Resolution Process (MARP).
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: 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, a hire-purchase agreement, a consumer-hire agreement or a BNPL agreement in the future.
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.
“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. Visit your local branch for further information.
Warning: You may have to pay charges if you pay off a fixed-rate loan early.
Warning: 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.
