PTSB has announced it is hiking its standard variable rate for mortgages by 0.4% to 4.7%.
While mortgage Managed Variable Rates (MVRs), that are linked to each customer's Loan-To-Value (LTV), will also climb by 0.4% for LTVs of more than 80% and by 0.6% for LTVs of 80% or less.
This will bring MVRs on home loans to between 4.4% and 4.7%.
But the bank has also bucked market trends by announcing a cut of 0.4% in its four-year fixed term mortgage product.
The changes to the MVR rates will take effect from January 17th, while the alteration to the Standard Variable Rate will take place immediately and the cut in the four-year fixed rate product will take place from December 6th.
There will be no change though in the lender’s fixed rates for new or existing customers, which it said account for approximately 95% of its new business.
The reduction in the 4-year fixed rate mortgage will bring the rate to 4% for loan to value ratios below 60%, 4.1% for LTVs from 60% to 80% and 4.35% for LTVs above 80%.
On the deposit side, the bank also said it is increasing its 40-Day Notice Account, bringing the rate from 0.01% to 1.00%.
"The bank has increased deposit rates six times since November 2022 with customers being offered rates of up to 3.0% AER on certain deposit products," it said.
"The bank will continue to keep deposit rates under review."
It said the changes follow ECB rate increases totaling 4.5% over the past 15 months.
When the rate changes announced today are taken into account, it means PTSB’s Standard Variable Rate has increased by a total of 0.75% since July of last year and the Managed Variable Rates have increased by between 0.65% and 0.80%.
The European Central Bank’s Governing Council is due to meet in two weeks’ time to consider whether to change interest rates across the eurozone again or leave them where they are.
With inflation across the bloc falling steadily now, expectations are growing that there will be no further increases, despite Central Bank of Ireland Governor, Gabriel Makhlouf, recently saying he couldn’t rule it out.
