Wednesday, 29th July. The new Chief Executive of Permanent TSB bank, Eamonn Crowley, has announced a major overhaul of home loan* mortgage interest rates charged by the bank. Mr. Crowley said that the move “combined enhanced competitiveness with increased fairness”.
The changes apply to the bank’s suite of variable rate and fixed rate mortgages form home loan* customers. The bank is reducing its Standard Variable Rate (SVR) by 0.55%. The bank is also reducing its range of Managed Variable Rates (MVR) from between 0.10% and 0.30%. And the bank will reduce fixed rates for all existing customers to rates as low as *2.95% for a 3 year fixed term, which is a significant move to align front and back book rates. The fixed rates are for periods of between 2 to 7 years.
The bank is also reducing its introductory 3 and 5 year fixed rates for new home loan* customers with mortgages over €250,000 with rates at low as 2.5%.
The changes will see:
Saving: *For an existing customer with a mortgage balance of €127,500, the reduction of 0.3% in the rate for a 3 year fixed rate mortgage will mean a saving of €682 over the 3 year term compared to the rate currently available.
Saving: For a customer with an average mortgage balance of €50,000 with a 10 year remaining term, a reduction of 0.55% on the Standard Variable Rate will mean a reduction in annual mortgage repayments of €158 per year. These customers could save even more if they chose to move to the new 3 year fixed rate of 2.95%, meaning a saving of €439 per annum for the term of the fixed rate. Until now an existing customer could not access such a competitive fixed rate.
The changes to fixed rates will come into effect from Tuesday next, 4th August, with the exception of the 7 year fixed rate for existing customers, which will be available from September. The changes to the variable rates will be available from early September.
Speaking today, Mr. Crowley said; “This move goes a long way to addressing the discrepancy which traditionally existed between our pricing for new and existing mortgage customers. Overall it combines enhanced competitiveness with increased fairness. We will continue to evolve our mortgage pricing strategy in this direction as we go forward in line with our ambition to further build trust with customers.”
*Please note these rate changes apply to home loans only (updated 17 September 2020)