Permanent TSB to overhaul mortgage rates

State-owned Permanent TSB will completely overhaul the interest rates it charges on its mortgage products from tomorrow.

Single interest rate for all standard variable rate mortgages will be replaced by a different charge depending on how much the customer wants to borrow compared with the value of the house.

Director of lending Ger Mitchell said: “This is a much more sophisticated pricing model for mortgages which will allow us to reward customers who have a lower risk profile while charging a higher rate from customers who represent a higher risk by virtue of the amount of money they are borrowing relative to the value of the property.”