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PTSB mortgage rate cut by 0.5pc

TENS of thousands of Permanent TSB mortgage holders are in line for significant savings as the bank announced it would cut its variable rate by 0.5pc.

Permanent TSB's variable rate will fall from 5.19pc to 4.69pc, closer to those of other banks.

A householder with a €200,000 mortgage will save more than €600 a year, while a homeowner with a €300,000 mortgage will see their repayments go down by €78 a month, or close to €1,000 over a full year.

The change comes into effect on May 14 and will see the monthly repayments of 74,500 residential mortgage holders fall.

However, Permanent TSB's rate still remains more expensive than those of competitors. Professional Insurance Brokers' Association's Rachel Doyle said the move should kick off interest rate cuts in all lenders on the basis that "current lending rates are still too high, given market conditions".

She said lenders needed to act independently of the ECB and reduce excessive interest rates to "alleviate the burden on those already struggling".

The cut makes Ulster Bank's variable rate mortgage the highest variable rate at 4.75pc. AIB has the lowest variable rate mortgage, where the rate is as low as 3.04pc.