Permanent TSB has launched a new offer for mortgage customers, whereby the lender will pay them 2% of each monthly mortgage repayment.

The offer, which is guaranteed until the end of 2027, is in addition to the bank's existing once-off 2% cashback payment of the full value of the mortgage for new borrowers.

This would see a new PTSB customer with a €300,000 mortgage receiving a €6,000 payment once they drawdown their loan, and then a payment of €30.36 each month.

In an investor note, Investec estimates the cashback offer as equivalent to a 10 basis-point (0.1%) reduction in the effective cost of borrowing for customers.

The offer is available to residential mortgage customers with loan approval from Monday 28 August, who make their monthly repayments from the lender's 'Explore' current account.

Borrowers who have recently received mortgage approval but have not yet drawndown their loans can also avail of the offer, however, buy-to-let and investment mortgage customers will be excluded.

PTSB hopes the move will boost its share of the Irish mortgage market, which reached 10.8% in the first half of this year - having been as low as 2% after the economic crisis.

Read David Murphy's assessment of PTSB's non-performing loans: 'Permanent TSB exposed as weakest Irish bank'

The bank's 2017 H1 results showed new mortgage lending grew by 62% year-on-year.

Last month PTSB said the number of non-performing loans on its books remains "unsustainably high" and that it intends to use a number of strategies - including portfolio sales, foreclosures and higher repayment requirements - to reduce that level over the medium term.