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Mortgage costs fall as PTSB plans cut

SOME 80,000 homeowners will benefit from a cut in Permanent TSB's rate cut to the tune of hundreds of euro annually.

Sources close to the financial institution have indicated that a cut in PTSB's variable rate will happen within weeks.

The news will come as a relief to cash-strapped and struggling homeowners.

A first cut of 0.25pc is expected to be announced soon -- and more cuts will follow in the future.

PTSB has come in for strong criticism in the past thanks to it's standard variable rate of 5.19pc -- the highest in the country.

It is higher than State-owned bank's AIB's rate of 2pc.

This means that PTSB customers are paying €300 more a month on a mortgage worth €300,000 than a customer with AIB on a standard variable rate on the same mortgage.

The institution had been under pressure to reduce its rate as it agreed a new plan with the Government to operate a slimmed-down bank in order to bring itself back to profitability.

Meanwhile, AIB is to pay back more than €3m to 11,500 customers after an overcharging mistake.



Refund

They will get an average refund of €270 each after the bank discovered discrepancies relating to insurance options on credit cards, including payment protection plan, travel insurance and card protection.

The customers inadvertently paid these charges and will receive refunds totalling €3.1m.

AIB said it started a review of credit card accounts last year after customer feedback and that it uncovered "a breakdown in its verification systems".

The State -owned bank said it had started to change its processes to eliminate the problem.

An internal review found it made errors in the way it sold payment protection on loans and credit cards and travel insurance.

The bank said the Central Bank has been notified.

It apologised to affected customers.

hnews@herald.ie


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