Permanent TSB to raise fixed mortgage and deposit rates in response to ECB changes – The Irish Times

Permanent TSB has become the latest Irish lender to raise rates in response to changes by the European Central Bank (ECB).

The bank announced on Thursday that it would raise interest rates, including fixed-term mortgage interest rates and deposit rates.

He said the changes followed three rounds of ECB interest rate hikes in recent months.

[ Irish monthly mortgage payments rose 12% ahead of ECB rate hikes ]

Interest rates on its fixed rate home loan products will increase by an average of 0.45%.

The increases will vary from 0.05% to 0.9% depending on the term of the fixed term mortgage, the amount of the loan and the amount of the loan relative to the value of the property in question.

The bank also announced that it would increase interest rates payable on certain deposit accounts from 0.2% to 1.15%.

Bank of Ireland, AIB, ICS Mortgages, Finance Ireland and Avant Money have each raised rates on certain products since the ECB first intervened in July. The permanent TSB was expected to follow suit.

The bank said customers who have already received a letter of offer will have 90 days (until February 15) complete the withdrawal of their loans at prevailing rates or before their current loan offer expires, whichever is earlier.

There were no changes to customers on existing fixed rates and there were no changes to the bank’s variable rates for new or existing customers.

“For any customer requesting a mortgage over €250,000, increases range from 0.05% to a maximum of 0.45%,” said Patrick Farrell, PTSB’s retail banking manager.

“We seek to balance the reality of the increased interest rate environment with the need to provide a competitive offer to our mortgage customers and to provide certainty, in particular, to customers who are already advanced in their mortgage journey,” did he declare.

“We also recognize the need to start raising deposit rates again for savers and we are pleased to begin this today by introducing increases to our regular and term deposit accounts,” he added.