Permanent TSB to cut variable mortgage rates

Wednesday 02 May 2012 11.12
The change will apply to some 74,500 owner occupiers
The change will apply to some 74,500 owner occupiers

Permanent TSB has announced a 0.5% cut in its standard variable interest rate.

The move follows agreement last week from the EU/IMF troika for a plan to split off about €12bn in loss making loans into a so-called bad bank.

From 14 May, PTSB will drop its interest rates for standard variable rate loans by half a percentage point, from 5.19% to 4.69%.

The change will apply to some 74,500 owner occupiers, not buy-to-let landlords.

Customers with tracker mortgages, which follow the ECB interest rate, are not affected by the move.

The bank says the change will save customers about €26 a month for every €100,000 borrowed.

Chief executive Jeremy Masding said the change was part of plans to create a more competitive bank with a viable future.

He said the bank will keep all lending rates under review.

Keywords: ptsb