permanent tsb is launching a major new initiative for the mortgage market which will see the bank rewarding customers with 2% of each monthly mortgage payment made by the customer. This is in addition to the existing offer of a once-off cashback payment of 2% of the value of the full mortgage. For a customer with a €300,000 mortgage, the bank will pay them approximately €6,000 on loan drawdown and then €30 each month directly to their Explore Account (see note 1). The bank commits to making these payments each month until December 2027. Terms and conditions apply (these are available on request).
The new product is the first of its kind in Ireland. The 2% monthly reward will be available to all residential mortgage customers who receive loan approval from Monday 28 August next and who make their monthly mortgage payments from an Explore Current Account. The bank believes the new initiative will add further momentum to the strong rise in the bank’s share of mortgage lending, which hit 10.8% in the first half of the year having been as low as 2% following the financial crisis. The bank’s results for the first half of 2017 showed new mortgage lending increased 62% year-on-year.
Speaking today, Mark Coan, permanent tsb Group Commercial Director, said the product was designed around the bank’s “rewards” focus:
“Rewarding our customers is key to what we do. Our ground-breaking Explore Account already gives great rewards every month to customers for choosing permanent tsb for their current account; this gives them a huge incentive to choose permanent tsb for their mortgage.”
The bank has been developing this product for almost 12 months as part of its wider strategy of delivering major product and service innovation for customers. Following extensive research with customers, the new product has received a very positive response and is expected to significantly boost the bank’s ability to attract new business and build lifelong relationships with customers.
Coan said no other bank in Ireland offers cashback of 2% at drawdown of the amount borrowed alongside a monthly cashback reward:
“This is a great, distinctive, customer-friendly offer that customers can’t get anywhere else. For a €300,000 mortgage a customer can get €6,000 cashback at drawdown and a further €3,600 in monthly cash rewards over 10 years. Customers are already voting with their feet to choose permanent tsb – we expect this will result in even more customers doing so”.
Customers who have recently received mortgage approval but who have not yet drawn down their mortgage will be invited to avail of the new offer. The new offer will not be available for customers taking out a Buy-to-Let / investment mortgage.
Note 1 - Cashback will be credited to the Explore Account (or other nominated and permitted permanent tsb account).