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Permanent TSB raises interest rate further

Permanent TSB has confirmed that it will increase the interest rate it charges customers with standard variable mortgages by 0.25pc from May 16.

The latest hike means a typical family with a €250,000, 30-year mortgage will have seen monthly repayments surge from €1012.68 a month in August 2009 to €1410.08 per month from May, according to Frank Conway, director with Irish Mortgage Corporation.

While the latest move simply passes on this week's ECB interest rate hike, it means Permanent TSB's variable-rate customers have seen their interest rate increase by 1.25pc already this year, and more than double over the past 20 months.

The latest hike will push Permanent TSB's standard variable mortgage rate from 5.19pc to 5.44pc. It stood at just 2.65pc less than two years ago. Most of that increase occurred without any rate hikes from the ECB.

The latest blow to homeowners comes after Bank of Ireland and its subsidiary ICS raised interest rates on their fixed mortgages to as high as 6pc, with effect from last night.

Holders of Permanent TSB's tracker mortgages are automatically hit with an interest rate increase after the ECB move on Thursday, that will take effect from April 18.

Irish Independent