The cuts come hot on the heels of similar moves by KBC Bank Ireland and Ulster Bank as experts warned of an impending mortgage battle
Permanent TSB has cut its rates on several of its fixed-rate mortgages as competition across the Irish home loan sector continues to heat up.
PTSB has announced a number of mortgage rate reductions on fixed rates for three and five-year products for new customers ranging from 0.05 per cent to 0.15 per cent, with the reduced rates taking effect from today.
The bank’s headline rate for a three-year fixed-rate “high value” mortgage of €250,000 or higher with a loan-to-value (LTV) ratio of up to 60 per cent will fall to 2.95 per cent. The same loan with an LTV of between 60 per cent and 80 per cent will be 3 per cent.
The rate for a five-year fixed-rate mortgage with an LTV of up to 60 per cent will fall from 3.25 per cent to 3.15 per cent, and the same loan with an LTV of between 60 per cent and 80 per cent will come with a rate of 3.20 per cent, compared with 3.35 per cent previously.
Mark Coan, group commercial director at PTSB, said the rates would offer customers reassurance as speculation continues about potential interest rate hikes this year or in early 2019.
PTSB’s rate cuts come hot on the heels of similar moves by KBC Bank Ireland and Ulster Bank as experts warned of an impending mortgage war.
Joey Sheahan, head of credit with MyMortgages.ie, the mortgage brokerage, said that market developments signalled “an impending explosion” in the fixed-rate mortgage market.
“There’s a market expectation that the ECB will raise their base rate at some point during 2018, which means that we will see, and have seen, people flocking to make the switch from standard variable rates,” he said. “A good number of owner-occupier mortgage holders are currently on SVR mortgages, and we would estimate that most of these would make significant savings by switching now to a new lender with a competitive fixed rate.”
This month, Ulster cut its five-year fixed rates from between 2.9 per cent and 3.75 per cent to between 2.8 per cent and 2.99 per cent.It also cut its four-year fixed rate for customers with a 90 per cent LTV to 2.85 per cent, from 2.99 per cent.
Source: The Times 9/04/2018
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