Permanent TSB to cut mortgage rates

Permanent TSB has become the third bank to reduce mortgage rates in the last three weeks.

It has reduced a three-year fixed rate for first-time buyers from 3.30% to 3.15% and dropped its five-year fixed rate from 3.40% to 3.25%.

The bank has also cut a number of fixed rates for borrowers with a loan-to-value ratio of 60% to 80% by 0.15%, a cut that can mean significant savings for the mortgage holder over the lifetime of the loan.

A first-time buyer borrowing €270,000 over 30 years at Permanent TSB’s previous three-year fixed rate of 3.30% will have a monthly repayment of €1,182.

However, a buyer borrowing €270,000 at the bank’s new rate of 3.15% will have a monthly repayment of €1,160. This is a saving of €22 a month, or €264 a year.

Permanent TSB has also extended its 2%+2% cashback offer until September.

The reductions follow similar moves by KBC and Ulster Bank.

Permanent TSB’s new fixed rates will be among the most competitive in the market.

Head of communications with bonkers.ie, Mark Whelan, said Irish borrowers have been paying much more than their European counterparts for too long.

“It is the third mortgage rate reduction we’ve seen in three weeks which means were are in the midst of a new mortgage rate war,” he said. “All eyes will now be on AIB and Bank of Ireland to see how they respond.

“To take advantage of the new mortgage rate war, borrowers should compare all rates available on the market and approach cashback offers with caution before committing.”

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