A mortgage lender has announced a large cut in rates with other providers expected to follow suit.
PTSB has announced the cuts which will see its rates reduce between 0.15 and 0.95%. As a result the bank says it will become a market leader for certain loan-to-value bands.
The new rates are set to come into effect from this Friday, January 17. They will be available to both new and existing customers, depending on their loan.
Further cuts by other lenders are expected as a result of the move by PTSB. The ECB cut rates four times last year, putting all lenders under pressure. Spain’s Bankinter is also joining the Irish market with a full retail offering following the expansion of its Avant Money brand.
It’s the fourth cut in rates announced by PTSB since December 2023. Customers who have loan applications approved at the old rates but who have not drawn down will automatically benefit from the lower rates.
It will also benefit applications that are at the pre-approval stage. Rate reductions will apply across all of the fixed-rate terms offered by PTSB between two and seven years.
The most significant reductions of up to 0.95% apply to the five-year and seven-year fixed term products, with rates from 3.8% for LTV of 60-80% for mortgages up to €250,000. Certain Green mortgages will see rates reduce by up to 0.7%.
Rate reductions for each term will vary depending on the LTV band. Rates across all fixed terms and LTV bands are reducing with the exception of the three-year fixed rate (60-80% LTV), which will remain unchanged.
Dermot Ryan, Head of Bank Products and Pricing Strategy of PTSB, said: “We are resolutely committed to competing strongly in the mortgage market. The combination of these new, lower rates and the quality of our service and our people demonstrates this commitment and our appetite to drive competition for the benefit of the customers we are here to serve.”
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