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Permanent TSB Variable Rate

  • 26-04-2012 2:22pm
    #1
    SoapMcTavish
    Registered Users, Registered Users 2 Posts: 495 ✭✭


    So - after the news that PTSB is to be broken up - what happens to my 5.6% variable rate mortgage ?
    Will the rate be reduced to be more in line with the other banks ?

    :mad:


Comments

  • #2
    liammur
    Closed Accounts Posts: 3,461 ✭✭✭liammur


    SoapMcTavish wrote: »
    So - after the news that PTSB is to be broken up - what happens to my 5.6% variable rate mortgage ?
    Will the rate be reduced to be more in line with the other banks ?

    :mad:

    They'll probably up the rates, to make it more profitable for the government. I will be closing my account down in protest.

    Edit:
    UP TO 80,000 homeowners will get a mortgage reprieve worth hundreds of euro this year as Permanent TSB plans to cut its standard variable rate within weeks.

    Sources last night confirmed that a first cut of 0.25pc would be announced imminently, and further cuts could follow.

    There was double good news for homeowners, with indications yesterday that the devastated property market is beginning to stabilise.

    After five years of almost constant falls, property prices were unchanged in March, with prices actually rising in Dublin, according to the Central Statistics Office (CSO).

    It will give hope to tens of thousands of homeowners who are paying back mortgages far bigger than what their property is now worth.

    Permanent TSB has come in for fierce criticism of its 5.19pc standard variable rate, which is the highest in the country.

    It is more than 2pc higher than the rate charged by state-owned AIB.

    This means that Permanent TSB customers are paying €300 more a month for a €300,000 mortgage than for the same-sized home loan on a variable rate with AIB.

    Permanent TSB has been under pressure to reduce the rate as it agrees a new plan with the Government for a slimmed-down bank in order to fight its way back to profitability.

    About 80,000 of the bank's customers are on the variable rates and the rate cut will save them €15 a month for every €100,000 borrowed.

    So someone who took out a mortgage for €300,000 with the bank would save €45 a month or €540 each year after the cut.


    The Irish Independent understands Permanent TSB was reluctant to lower the rate while it was battling to convince the authorities to agree to its new business plan -- since it could look like management was making the cut to win favour with the Government.

    The bank's new business plan has now been agreed in principle, clearing the way for management to start implementing changes.

    The mortgage drive will be part of a broader overhaul that could result in Permanent TSB cutting more than 100 of its 1,800 jobs and closing up to 15 of its 92 branches.

    As well as lowering the mortgage rate, the bank is planning a fresh push to deal with mortgage arrears. It will be increasing the number of staff working on arrears solutions, and rolling out more flexible ways of dealing with troubled mortgages.

    Earlier, the CSO released statistics that showed property prices were stable for a month -- only the third time this has happened since 2007.


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