Saturday 19 August 2017

Bank accused of 'gouging' loyal customers cuts its fixed rates

Permanent TSB has almost halved some of its fixed rates for existing customers, but has not
reduced its variable rate. Stock picture/Collins
Permanent TSB has almost halved some of its fixed rates for existing customers, but has not reduced its variable rate. Stock picture/Collins
Charlie Weston

Charlie Weston

A state-rescued bank has cut its fixed mortgage rates after being accused of exploiting its customers.

It comes as Central Bank figures show a surge in new home buyers and existing mortgage holders opting for fixed rates over variables.

Banks have been cutting fixed rates lately in a bid to stop existing customers switching to get better deals, but are not reducing variable rates.

Now, Permanent TSB has almost halved some of its fixed rates for existing customers, but has not reduced its variable rate.

The bank, which is 75pc owned by taxpayers, has lowered its two-year fixed from 7.25pc to 4.20pc.

This would see a family with a €250,000 mortgage saving €450 a month on the two-year fixed rate.

The three-year rate has come down from 8.75pc to 4.20pc.

Before it dropped its rates, mortgage broker Karl Deeter had accused the bank of "gouging" loyal customers. The bank has also extended its 2pc cash-back offer for new mortgage drawdowns.

It was due to end on the last day of this month, but will now run to the end of the year.

Irish Independent

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