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Image Permanent TSB cuts mortgage rates for the second time in 2018
Image Robyn Hamilton
Staff Writer

Permanent TSB has made cuts of up to 0.20% to its fixed three and five-year mortgage rates for new customers that take effect from today. Let’s take a look at the details.

Though 0.20% might not seem like much, this is the second round of cuts from Permanent TSB this year, after the bank made a range of cuts of up to 0.15% back in April. Irish borrowers are still paying much higher mortgage rates than our fellow Europeans, but let’s hope we’ll only see more of these incremental cuts over time - for now, let’s take a look at the cuts in question.

Three and five-year fixed rate cuts

For first-time buyers, or those with a loan-to-value (LTV) ratio of greater than 80% and less than or equal to 90%, the bank has cut its three-year fixed rate for new customers from 3.15% to 3.10% and its five-year rate from 3.25% to 3.20%

Although a cut of 0.05% may not sound like much in isolation, it can add up to a nice little chunk of change for borrowers over the lifetime of a loan.

A first-time buyer borrowing €270,000 at Permanent TSB’s previous three-year fixed rate of 3.15% over 30 years would have had a monthly repayment of €1,160.29.

But a buyer borrowing €270,000 at the bank’s new rate of 3.10% will have a monthly repayment of €1,152.94. This is a saving of €7.35 a month, or €88.20 a year. That’s a saving of €2,644.31 over the complete mortgage term. Small change maybe - but it’s something.

Those with a bigger deposit, and an LTV of 80% or lower, come out a little better off, as a range of the bank's three and five-year fixed rates that fall under this umbrella have been cut by 0.20%. Let’s take a look at an example:

Permanent TSB’s three-year mortgage rate, for those with an LTV of between 60% and 80%, has been cut from 3.00% to 2.80%. However this rate is only avilable to customers who are borrowing over €250,000.

Using the same figures from above, a buyer borrowing €270,000 at the previous rate of 3.00% over 30 years would have had a monthly repayment of €1,138.33 but on the new rate of 2.80%, the buyer will have a monthly repayment of €1,109.41.

This is a saving of €28.92 per month, €347.04 per year or an eye-watering €10,411.20 over the complete mortgage term!

Permanent TSB rates for mortgages less than €250k

New Rate Old Rate
3 Year Fixed Rate New Business - less than or equal to 60% LTV 2.85% 3.05%
3 Year Fixed Rate New Business - greater than 60% and less than or equal to 80% LTV 2.90% 3.10%
3 Year Fixed Rate New Business - greater than 80% and less than or equal to 90% LTV 3.10% 3.15%
5 Year Fixed Rate New Business - less than or equal to 60% LTV 2.95% 3.15%
5 Year Fixed Rate New Business - greater than 60% and less than or equal to 80% LTV 3.00% 3.20%
5 Year Fixed Rate New Business - greater than 80% and less than or equal to 90% LTV 3.20% 3.25%

 

Permanent TSB rates for mortgages greater than €250k

New Rate Old Rate
3 Year Fixed Rate New Business - less than or equal to 60% LTV 2.75% 2.95%
3 Year Fixed Rate New Business - greater than 60% and less than or equal to 80% LTV 2.80% 3.00%
5 Year Fixed Rate New Business - less than or equal to 60% LTV 2.85% 3.05%
5 Year Fixed Rate New Business - greater than 60% and less than or equal to 80% LTV 2.90% 3.10%

Are these cuts available to existing customers?

Unfortunately these rate cuts only apply to new customers. However, if you're an existing customer of Permanent TSB and you're unhappy with the rate you're on, you can always look into switching your mortgage. You'd be surprised at how much you could save.

Always make sure to compare rates across all mortgage lenders!

If you’re tempted by any of these freshly cut mortgage rates - hold your horses! Though Permanent TSB’s rates are some of the most competitive on the market, it is important to compare all rates, across all lenders to make sure you’re making the correct decision for your particular needs and repayment capacity.

Compare banks and mortgage rates now.