permanent tsb cuts fixed rates, but for new customers only

[Brendan Burgess]

Friday, April 08th. Permanent TSB has announced today that it is cutting the rates on its 4-year fixed rate mortgage product by 0.2%.



The rate falls from 2.25% to 2.05% for customers with a Loan To Value (LTV) of less than 80%. For customers with an LTV from 80% to 90%, the rate falls from 2.55% to 2.35%.

The new rates will apply to all new home loan customers including first time buyers, people moving home and customers seeking to switch mortgage provider, and is the Bank’s lowest ever fixed rate. They are not available to existing home loan customers or for new or existing buy to let customers.



The move aims to build on the popularity of the Bank’s mortgage offering, which has resulted in the Bank growing its market share of new mortgage lending from 15.3% to 17.8% over the course of 2021.



Speaking today, Jeff Harbourne, Head of Personal Banking, said: “Our 4-year fixed rate mortgage product has been very popular with customers since we launched it last year. It has broadened the choice available for customers and we are delighted to offer even lower rates on this product to customers from Monday.”



The new fixed rates will be available from Monday the 11th of April.

 

[Sleve McDichael]

Worth noting that their 5 year <80% LTV Fixed rate is 2.55%, but includes a 2% cashback lump sum, as well as 2% reduction in monthly repayments from a PTSB current account. This reduces the effective rate to about 1.95% over 5 years, so you'll get:
- a cheaper mortgage with 1 year extra security
- the added advantage of getting the money upfront (effectively a zero-interest home improvement loan).

The trade-off then of course is that your monthly repayments are slightly higher, but again you're saving money overall

 

[noelÓm]

Worth noting that their 5 year <80% LTV Fixed rate is 2.55%, but includes a 2% cashback lump sum, as well as 2% reduction in monthly repayments from a PTSB current account. This reduces the effective rate to about 1.95% over 5 years, so you'll get:
- a cheaper mortgage with 1 year extra security
- the added advantage of getting the money upfront (effectively a zero-interest home improvement loan).

The trade-off then of course is that your monthly repayments are slightly higher, but again you're saving money overall

What does a "2% reduction in monthly repayments" mean exactly, do you know? I believe it is a part of this new 4-year product too.

 

[Paul F]

What does a "2% reduction in monthly repayments" mean exactly, do you know? I believe it is a part of this new 4-year product too.

You get 2% of the value of your monthly mortgage payment back every month. (Here is PTSB's FAQ about it.) E.g., if your monthly mortgage payment is €1,500, you get €30 back every month.

Note that you must have an Explore account to get this benefit, and that has a €6/month maintenance fee, so it's not quite 2% when you factor that fee in. (In the above example it's €24 net of the fee, or 1.6%.)

Note that when the four years are up, you won't be eligible for PTSB's lowest rates – those are reserved for new customers only.

 

[delta_bravo]

I can generally understand why they wouldn't offer to existing customers while still in a fixed term but for a fixed customer whose fixed term has ended and not offering these rates is essentially a signal they want you to leave or if you can't they'll stiff you for so much more

 

[HollowKnight]

I can generally understand why they wouldn't offer to existing customers while still in a fixed term but for a fixed customer whose fixed term has ended and not offering these rates is essentially a signal they want you to leave or if you can't they'll stiff you for so much more

Inertia. Very people switch mortgages due to the perceived hastle involved.