ptsb cuts mortgages rates, but for new business only

permanent tsb to cut mortgage rates for new customers by between 0.36% and 0.42% from next Monday (12th)


“These new rates show that permanent tsb is bringing real competition to the mortgage market” – Richard Kelly Head of Mortgages

permanent tsb bank has announced a series of interest rate cuts for new mortgage customers, effective next Monday, 12th January. The new rates will make permanent tsb one of the most competitive mortgage providers in a number of key market segments.



Following the cut, permanent tsb’s managed variable rate for new mortgage customers will be 3.76% (variable) APR* – down 0.36% on the current managed variable rate where the loan is 50% or less of the value of the house. The managed variable rate for customers whose loan is between 70% and 80% of the value of the house will see a cut of 0.42% to an APR of 4.07%.


Speaking today, Richard Kelly, Head of Mortgages at permanent tsb bank, said that the new rates highlighted permanent tsb’s position as a strong competitive force in the mortgage market; “We have grown our market share to 13% over the past two years and we are determined to continue that momentum into 2015. These new rates show that permanent tsb is bringing real competition to the mortgage market and we will continue to provide mortgage credit to those customers who demonstrate affordability and are credit worthy.”


permanent tsb charges different interest rates for new and existing managed variable rate customers depending on the size of the mortgage relative to the value of the house bought (known as Loan to Value Mortgages). The bank sets different variable rates depending on whether the mortgage is up to 50% the value of the house or between 50% and 60% of the value of the house and so on up till between 80% and 90% of the value of the house.


Full details of the cuts being introduced are in the attached PDF.

Obviously, this is welcome as it will put pressure on other banks to react.

But the application to new customers only is really a disgrace. Any existing customer who can, should move to KBC or AIB rather than continuing to pay the current very high rate. However, I suspect that when they tell ptsb that they are moving, they will be given the new rate.

People with high LTVs or negative equity or who have arrears will continue to be penalised.

This is a draft press release which I was just about to issue, but now I see Bank of Ireland is doing the same trick.

Existing customers of ptsb should immediately switch to another cheaper lender if they can



Ptsb today announced cuts in their mortgage rates for new customers. But they have not passed on these cuts to existing customers. By comparison, when AIB reduced their rates in November, they reduced the rates for both new and existing customers.

Ptsb has a history of treating its customers with contempt and this is just another example of it. In 2010, they raised the Standard Variable Rate to 6.25% when AIB and Bank of Ireland were charging just 3%. And because no other lenders were taking on new business, the ptsb customers were captives and could do nothing about it.

At 4.5%, ptsb has one of the highest standard variable rates for its existing customers.

You can find the full list here: Standard Variable Rate for all lenders

Existing customers of ptsb can find a list of the cheapest rates here:



As ptsb is not passing on these cuts to their existing customers, many existing customers can get a better deal elsewhere.

A borrower whose loan is less than 60% of the value of their home, can switch from ptsb’s 4.5% to KBC at 3.6% , a cut of €1,800 a year, every year on a mortgage of €2000,000. Between legal fees, land registry, valuers fees and VAT, it costs around €1,700 to switch. KBC will pay €1,000 towards your legal fees, so the net cost should not be more than €700. With a mortgage of €200,000 a borrower would recover this in less than 6 months.

A borrower who has a loan of less than 80% of the value of their home can get a loan from the EBS at 4%, which would still save €1,000 a year every year.

Borrowers are advised not to be tempted by fixed rate deals which look low

Borrowers may be tempted by low fixed rates from AIB and KBC, but they should avoid these. Irish borrowers are still paying around 1.5% more than borrowers in other Eurozone countries. There is no basis for such profiteering and I would expect variable rates and fixed rates to fall further.

Hi Brendan I have a LTV of less than 50% with TSB variable rate,as an existing customer am I going to gain nothing from this.

Nothing at all. Except an explosive kick to your rear end to switch to another lender.

I just rang them only new customers and as i am a SVR customer I can not change to the LTV rate either. Fuming.com . I am definitely going to switch now .
Oh and the agent had to put me on hold to find out this information I told him I was going to switch and really he could not have cared less. He gave me no options

It is a sad state of affairs that banks can offer one variable rate for new customers and one variable rate for existing customers. It would be great if this price differentiation strategy was banned via a duty of care provision on banks.

Hi Ciarán

It is likely that this discriminatory treatment of existing customers is in breach of the Central Bank’s Consumer Protection Code, whose first General Principle is

“A Regulated entity must act honestly, fairly and professionally in the best interests of its customers and the integrity of the market;”

How can it be fair to offer new customers a lower rate than existing customers?


I would be happy to help an existing customer of Bank of Ireland or ptsb to take a case to the Ombudsman, or maybe even the High Court? Possibly even run two cases simultaneously.

In relation to this development, someone close to me has a 2.3% interest rate variable with PTSB, would they now be advised to shop around too or would no other bank match that PTSB rate etc?
How do they figure out if they can/should shop around?

People with trackers have a much better deal than they can get anywhere else. This thread is about Standard Variable Rate mortgages.

Hi guys. I am (for the moment) an existing BoI standard variable customer. This is the final straw for me. I want to switch now. Trouble is that I went 50:50 fixed and variable. Can I switch out the variable part on its own without paying a penalty for closing out the fixed part? I'm guessing I could run into trouble with the collateral / deeds being held by two banks?

Sick of BoI now. Have been personal and business customer of theirs all my life. Closing out everything now on the back of this. Will look into transferring my Bank of Ireland Life policies too. Time for me make a (tiny) stand. As a valued customer, of course.

Despicable.

Hi Gumby

But remember to come back and let us know how you get on, good or bad.

Check out this thread

BoI reduced my SVR to the new low LTV rate when I told them I was moving to KBC

But remember to come back and let us know how you get on, good or bad.

Can I switch out the variable part on its own without paying a penalty for closing out the fixed part? I'm guessing I could run into trouble with the collateral / deeds being held by two banks?

Click to expand...

Not possible. If you are changing banks you will need to redeem your existing mortgage in full. Penlty for early redemption of fixed rate will be applied!

Another reason not to fix rates.

Brendan Burgess said:

Obviously, this is welcome as it will put pressure on other banks to react.

But the application to new customers only is really a disgrace. Any existing customer who can, should move to KBC or AIB rather than continuing to pay the current very high rate. However, I suspect that when they tell ptsb that they are moving, they will be given the new rate.

People with high LTVs or negative equity or who have arrears will continue to be penalised.

Click to expand...

Hi Brendan,

I am so mad over this absolute rip-off that I've just joined up here in order to join your campaign. I rang Permanent tsb the other morning as soon as I heard their new advert offering cheaper SVRs to new customers. I spent 13 minutes on hold before speaking to a lassie, who (pretended?) to know nothing about the new rates. She then had to put me on hold when I politely requested that as an existing customer they should have the courtesy to also extent the lower rate to me. About 10 minutes later she came back, sorry but these rates are for new customers only. I then requested to speak with the Mortgage manager Ms Furlong, only to be told that she does not take calls from customers! So I asked the lassie on the phone to pass on a few messages, including the fact that I would complain to the F. Ombudsman, the Central Bank, would order my brother currently getting a K450 mortgage to not go near Permanent tsb considering the absolute distain they have for their existing customers, and finally, would be moving lock stock and barrel to KBC bank. OK sez the lassie, not a bother letting me go to another lender! What kind of crazy rubbish is this where they will pay e1000 legal fees to lure new customers, and yet by not passing on this lower rate to me they are forcing me to take up KBC's offer of e1000 legal fees, andput me through all the hassle of moving our current and mortgage account, just to have a lower rate, when they could just give me the lower rate at the press of a button? THIS IS MADNESS! Good luck with your campaign Brendan, if anything, ramp it up a bit, I think there are a few hundred thousand SVR folk out there who would join your campaign if they knew about it - do a bit of advertising, get it going on facebook, etc, and spread the word!

Hi whats the difference between a SVR and an LTV rate? I'm a PTSB customer and i'm looking at switching