The following options are available to customers:
Payment Holiday Options
Underpayment
(i) The applicant may use a period where no scheduled monthly or other periodic repayment is made, provided sufficient overpayments have been made in order to provide for the payment holiday. In such circumstances, the overpayments will be applied towards the funding of the payment holiday.
(ii) The term of the mortgage will not be extended where this option is exercised.
(iii) This option is not available on annual interest, interest only, endowment or pension backed mortgages.
(iv) This option cannot be exercised in conjunction with the skip months payment holidays.
Skip Months Payment Holidays
(i) The applicant may elect not to make a monthly repayment for any month or months not exceeding two months (or such other longer period as PTSB, in its absolute discretion allows) consecutively or separately, in any 12 month period and the amount of the monthly repayments due thereafter will be increased from the date of the acceptance of the application and over the remainder of the term of the mortgage to take account of the amount not paid by reason of such election. If the applicant decides to terminate the exercise of this option, the applicant’s monthly repayments will be recalculated accordingly for the remainder of the term of the mortgage to take account of such termination.
(ii) The term of the mortgage will not be extended where this option is exercised.
(iii) This option cannot be exercised in conjunction with the payment holidays.
(iv) This option is not available on annual interest, endowment, interest only, pension-backed, commercial or residential investment mortgages.
(v) This option is not available on accounts where there is no direct debit or standing order drawn on a PTSB account in place.
vi) You cannot receive this facility if your mortgage is in arrears.
vii) This option cannot be exercised in conjunction with the underpayment payment holiday option.
Overpayment Options
Lump-Sum Payments
(i) Lump-sum payments of any amount (where payment is made by cheque, the cleared funds) will be: (a) applied, at the option of the applicant, to reduce the applicant’s monthly repayments and to continue to repay the loan over the remaining term or; (b) in the case of annuity mortgages applied, at the option of the applicant, to reduce the loan term or; (c) credited to the mortgage account thus reducing the loan balance outstanding and either allowing the funding of future underpayments or payment holidays with overpayments.
(ii) Interest may be adjusted, in the case of monthly rest accounts, on the first day of the month following receipt of payment of the lump-sum and in the case of daily rest accounts, on receipt of payment of the lump-sum.
(iii) Where the lump-sum payment is made in respect of a fixed rate mortgage prior to the expiry of a fixed interest rate period, the applicant shall pay an additional sum calculated in accordance with the conditions relating to fixed rate loans as provided in general mortgage loan approval conditions applicable to the applicant’s mortgage. (Please see important information on ‘Fixed Rate Loans’ at the end of the terms and conditions).
(iv) In order to reduce the term of the mortgage or, the monthly repayment, from a lump-sum payment, the applicant must complete the appropriate section in the attached application form.
(v) In the case of annual interest mortgages, lump-sum payments will only be included for interest calculation purposes from the 31st December of that year and thereafter.
(vi) No interest benefit will accrue for lump-sum payments on former Irish Permanent endowment mortgages or pension backed mortgages unless the credit is transferred off the capital. There are three types of interest calculation accounts: yearly, monthly and daily. Of these, only PTSB interest only Daily calculation accounts will accrue an interest benefit if there is a credit on the account.
(vii) This option cannot be exercised in conjunction with underpayments and overpayments.
Regular Overpayments
(i) Regular overpayments may be made monthly or in respect of any other period as agreed with PTSB and of any amount.
(ii) The amount of an overpayment may be added to the scheduled monthly or other periodic payment and the total increased repayment will be deducted by direct debit. If no direct debit is in place the repayment arrangements for the overpayment must be made by the applicant in a manner satisfactory to PTSB.
(iii) All overpayments will be credited to the mortgage account and interest will be adjusted accordingly.
(iv) Regular overpayments cannot be made in respect of annual interest mortgages, former Irish Permanent endowment mortgages, PTSB interest only or pension backed mortgages.
(v) The applicant must pay the loan by direct debit or standing order drawn on a PTSB account.
Preferred Payment Date
The applicant may elect to change the due date of payment of the scheduled monthly or other periodic repayment to any other date of the month in which such payment is due but the scheduled monthly or other periodic repayment payable thereafter will be increased over the remaining term of the mortgage to take account of the daily amount of interest accrued between the previous date for such repayment and the new preferred date of such repayment. Please note that the exercise of this option may result in additional interest costs over the term of the loan. This option is currently not available on former Irish Permanent mortgages. Your preferred payment date cannot be changed if you are already on a restructure agreement (for managing arrears on your mortgage) or a flexible repayment option. The date can only be amended once in any billing period. If the preferred payment date falls on a non-business day, the monthly payment will be payable on the last business day prior to that non-business day.
Moratorium/Payment Holiday
(i) The applicant may choose a period where no or a partial scheduled monthly or other periodic repayment is made and where there is no overpayment made with which to fund the payment holiday. However a nominal sum of €1 (or such other lesser amount as PTSB in its absolute discretion thinks fit) together with any insurance payments will continue to be collected. This option will be available for a period of three months, consecutively or separately, in any three year period provided that the total number of months in which this option may apply will not exceed nine (that is to say three periods of three months over the term of the mortgage). The interest portion of the monthly repayments which the applicant has elected not to make (including interest on that unpaid interest) will be added at the end of the three month period (or a lesser monthly period if the applicant chooses a lesser number of months under this option) to the capital due under the mortgage and will be repayable over the remaining term of the loan. PTSB may, at its discretion, alter the number of periods or the duration of any period as it may deem fit. This option can only be exercised where:
» the first 12 months of the mortgage term has elapsed and,
» the ratio which the loan amount bears to the value of the property is less than 90% and,
» there has not been more than one month’s arrears within the previous two years prior to the application to exercise this option and,
» repayments are made by direct debit.
» PTSB reserves the right to terminate the facility of the Moratorium/Payment Holiday at any time, with or without notice for any reason which the Bank, in its absolute discretion thinks fit and subject to applicable law. In the event of such termination, the bank will revert to the collection of the scheduled monthly or other period repayment as originally provided for under the applicant’s mortgage and which will include any interest not paid arising from the moratorium/payment holiday.
(ii) The term of the mortgage will not be extended where this option is exercised.
(iii) This option cannot be exercised in conjunction with the skip months’ payment holiday and low start option.
(iv) This option is not available on annual interest, interest only, endowment, pension-backed, residential investment or commercial mortgages.
No refunds of Overpayments or Lump-Sum Payments
No refunds of overpayments or lump-sum payments will be made to the applicant when payment thereof is received by PTSB.
Variation
The applicant must satisfy the mortgage requirements applicable to the flexible repayment options prior to the exercise of any flexible repayment options. PTSB may amend or vary such mortgage requirements from time to time. PTSB may amend or vary these terms and conditions from time to time.
Application for Flexible Repayment Option
PTSB reserves the right to refuse any application in respect of the exercise of any flexible repayment options for any reason which, in its absolute discretion, it thinks fit. Flexible options can be set up on monthly rest accounts and daily rest accounts. No flexible repayment options are available on endowment, interest only, annual interest or pension-backed mortgages unless specified. All applications must be received at least 16 days before the next repayment billing date to be processed.
Termination
PTSB reserves the right to terminate the exercise of any flexible repayment option at any time, with or without notice, for any reason which PTSB, in its absolute discretion, thinks fit subject to applicable law. In the event of the termination of the exercise of the flexible repayment options PTSB will require payment of the full monthly repayment which would otherwise be payable but for the exercise of any flexible repayment option and the monthly repayment will be recalculated to reflect the rate of interest, the balance outstanding at the time of termination of the exercise of the flexible repayment option and the remaining term of the loan.
