Permanent TSB is introducing a new mortgage cashback initiative (the first of its kind in Ireland) which will see the bank pay new mortgage customers 2% of their monthly mortgage repayment each month directly into their Explore Current Account.
Permanent TSB is launching a major new initiative for the mortgage market which will see the bank rewarding customers with 2% of each monthly mortgage payment made by the customer. This is in addition to the existing offer of a once-off cashback payment of 2% of the value of the full mortgage.
What does this mean for the customer?
To put the new move into context, let’s take a look at an example. For a customer with a mortgage to the value of €300,000, Permanent TSB will pay them approximately €6,000 on their initial loan drawdown and then a further €30 each month directly to their current account.
The bank has committed to making these payments each month until December 2027 (subject to terms and conditions).
The move was designed to build on the bank’s “rewards” focus as we have seen with the Explore Current account, which rewards customers with 10 cent every time they make a transaction using their debit card.
Of the new cashback scheme, Mark Coan, Permanent TSB Group Commercial Director, said:
“Rewarding our customers is key to what we do. Our ground-breaking Explore Account already gives great rewards every month to customers for choosing Permanent TSB for their current account; this gives them a huge incentive to choose Permanent TSB for their mortgage.”
The bank has been developing this product for almost 12 months as part of its wider strategy of delivering major product and service innovation for customers. Following extensive research with customers, the new product has received a very positive response and is expected to significantly boost the bank’s ability to attract new business and build lifelong relationships with customers.
Who is eligible?
All new mortgage customers, as well as customers who have recently received mortgage approval but who have not yet drawn down their mortgage, will be invited to avail of the new offer.
Customers must also have an Explore account with Permanent TSB to avail of the offer as monthly payments will only be made into these types of accounts.
Customers taking out a Buy-to-Let/investment mortgage will not be eligible for this offer.
What will this mean for the market?
Permanent TSB believes this new initiative will add further momentum to the strong rise in the bank’s share of mortgage lending, which hit 10.8% in the first half of the year having been as low as 2% following the financial crisis. The bank’s results for the first half of 2017 showed new mortgage lending increased 62% year-on-year.
Mark Coan said no other bank in Ireland offers cashback of 2% at drawdown of the amount borrowed alongside a monthly cashback reward:
“This is a great, distinctive, customer-friendly offer that customers can’t get anywhere else. For a €300,000 mortgage a customer can get €6,000 cashback at drawdown and a further €3,600 in monthly cash rewards over 10 years. Customers are already voting with their feet to choose permanent tsb – we expect this will result in even more customers doing so”.
Ready to take out a mortgage?
Before you decide on a mortgage lender it’s vitally important that you consider all of your options before you commit to any decisions. Lucrative cashback offers can be enticing - as they’re designed to be - but they might not always be the best option for your own particular circumstances. You can compare the mortgage market using our mortgage calculator.