Permanent TSB rate hike to take effect

Permanent TSB's controversial hike in variable mortgage interest rates is due to take effect from today.

More than 50,000 customers will be affected by the increase, which would see monthly repayments on a €300,000 mortgage increase by around €70.

On Friday, Finance Minister Brian Lenihan indicated that he had no intention of intervening to prevent the move.

SIPTU had demanded that the Government threaten to withdraw the State's deposit guarantee from any financial institution that raises rates.

The union says Permanent TSB's move will further erode consumer confidence and damage the economy at a time when the bank is being propped up by taxpayers.

Experts believe other banks are set to follow Permanent TSB's lead, but so far none have announced any similar hikes.