AN Irish bank has confirmed “significant” new reductions to its mortgage rates in a huge boost for first-time buyers and homeowners.
PTSB confirmed cuts of up to 0.45 per cent would be effective from today for both new and existing customers.
The reductions announced today apply across the three-year, four-year, five-year and seven-year fixed-rate term rates.
The most significant reduction will be for the 80 to 90 per cent Loan to Value seven-year fixed term product.
This rate will reduce by 0.45 per cent bringing it to 3.60 per cent.
This means homeowners with a €200,000 balance on their 80 to 90 per cent Loan to Value on their seven-year fixed term will save €47 per month over a remaining 20-year term.
This works out at a saving of €564 per year and €11,280 over the 20 year term.
The five-year fixed rate 80-90 per cent LTV is reducing by 0.30 per cent to 3.75 per cent.
The four-year fixed rate 60-80 per cent LTV is reducing by 0.15 per cent to 3.25 per cent.
And the three-year fixed rate 80-90 per cent LTV is reducing by 0.15 per cent to 3.90 per cent.
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Rates on certain Green Mortgages with a BER of A1 to B3 will also reduce by up to 20 per cent.
Customers who have approved loan applications at the current rates but have not drawn down will “automatically benefit” from the lower rates.
And PTSB have confirmed customers whose applications are at the pre-approval stage will also benefit from the new rates.
PTSB’s Head of Bank Products and Pricing Strategy said the new changes will aid first-time buyers in particular.
Dermot Ryan said: “As one of the country’s leading retail banks, PTSB is fully committed to competing in the Irish mortgage market and providing increased choice for customers, including generous cashback offerings.
“The new lower fixed-rate mortgages should help First Time Buyers and provide more options for those seeking rate certainty for longer terms.”
HIGHER VALUE CHANGES
Higher value mortgages will also welcome new rates from today on the three-year and five-year mortgage.
The rate of the three-year higher value mortgage of €250,000 or more 80-90 per cent LTV is reducing by 0.15 per cent to 3.70 per cent.
And the five-year higher value mortgage of €250,000 or more 80-90 per cent LTV is reducing by 0.25 per cent to 3.60 per cent.
Rate reductions will vary depending on the Loan to Value band and customers are advised to contact the bank for details on how the changes will hit them.
Today’s announcement marks the sixth mortgage rate reduction PTSB has announced since December 2023.
