Tuesday 23 December 2014

Major interest blow for Permanent TSB mortgage customers

Published 29/04/2014 | 17:45

A Permanent TSB branch on St. Stephens Green.
A Permanent TSB branch on St. Stephens Green.

THOUSANDS of mortgage customers of Permanent TSB will end up having to pay more every month after the bank said it was hiking its variable rate from June.

The bank has around 70,000 mortgage customers on variable rates.

Interest charged to its existing customers on variable rates will jump from 4.34pc to 4.5pc, a move that will mean monthly repayments will go up by around €18 for a €200,000 mortgage.

There will also be a higher rate charged to new mortgage customers.

The bank claimed it had last changed its variable rate three years ago.

However, the increase comes after a number of cuts in European Central Bank lending rates, with expectations that there could be another ECB cut this week.

A spokesman for the bank said: “The change to the rate reflects the bank’s funding costs. Despite the change, however, Permanent TSB’s standard variable rate is still on a par with most other lenders.”

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