Seven year fixed rate launched by Permanent TSB in bid to attract new borrowers
PERMANENT TSB has launched a seven-year fixed rate in a bid to attract new borrowers and switchers.
The rate is 3.10pc for those borrowing less than 60pc of the value of the property and who take the fixed rate from this year.
But the new rates are only for new customers. The bank says it may make it available for existing customers later.
The seven-year Permanent TSB rate is 3.20pc for those borrowing between 60pc and less than 80pc of the value of the property.
And it is 3.35pc for those borrowing between 80pc and less than 90pc of the value of the property.
The new seven-year fixed rates comes just days after non-bank lender Finance Ireland formally launched a new suite of fixed and variable rates.
Finance Ireland is offering seven-year fixed rates, with the interest charged depending on the amount borrowed relative to the value of the mortgage, so-called LTV (loan-to-value) rates.
Finance Ireland has a rate of 2.95pc for those borrowing less than 60pc of the value of the property, rising to 3.6pc for those with an LTV of less than 90pc.
Ulster Bank has a rate of 2.99pc for those borrowing less than 60pc of the value of the property. The rate is 3.29pc for those borrowing up to 90pc LTV.
Asked why existing borrowers were being excluded from the new rates, the bank said it was carrying out a review of its mortgage pricing structure for existing customers which may lead to reduced rates for existing customers later this year.
It added that existing variable rate customers may be eligible to reduce their rate by up to 0.8pc by moving to the bank’s managed variable rate.
Around two thirds of eligible customers have yet to avail of this move which simply requires a valuation of the relevant property which the bank itself will pay for.
The bank reduced its fixed rates for buy-to-let borrowers.
Head of mortgages at Permanent TSB Laura Temple said: “We are keen to meet this need and are therefore extending our fixed rate offering to include this seven year product.”
She said that separately the bank is in the process of conducting a review of its pricing model for existing customers and hopes to make some positive announcements on this later in the year.