Permanent TSB is to raise the interest rate on its standard variable residential mortgage by 0.5 per cent, it has announced.
The changes will affect about 80,000 customers or 38 per cent of the bank’s residential mortgage customers. It will have no impact on customers with fixed or tracker mortgage products.
The bank said the change would take effect from Tuesday August 3rd. It brings the new rate to 4.19 per cent.
Chief executive David Guinane said the bank regretted having to make this decision but that it reflected continuing high costs of funds.
The average mortgage outstanding for customers with this type of mortgage is €66,532.
The bank said 60 per cent of such customers had a mortgage of less than €60,000. The impact of the rate increase on the average mortgage will be about €17 per month.
