There has been some coverage of people saying that the PTsb offer of a discount for overpayment is not good value, that the bonus should instead be in the region of 25%.
I don’t know where that figure has been taken from, having tried to work it out several times we just can’t make it stack up.
Is the idea of an overpayment any good?
In the PTsb scheme you have to consider ‘net interest’ rather than just stating that it isn’t a great idea. The figures I have done are based on the clients position rather than what the bank may or may not make – in the same way that I don’t query the margin a shopkeeper gets on a Mars bar – which is where some focus has been on this.
Rules of scheme: you can’t pay more than 50% of your mortgage, every 5k gets a …