Permanent TSB customers with variable rate mortgage will see the rates they are paying increase by between 0.05 per cent and 0.4 per cent.
This is the first change in non-tracker rates announced by any Irish lender since the European Central Bank raised its rates by a further 0.25 per cent last week. In total, the ECB has now increased its main rate by 4 per cent since last July.
The bank's standard variable rate is set to climb by 0.35 per cent to 4.3 per cent from 31 July. Meanwhile, the loan-to-value based Homeloan Managed Variable Rates (MVRs) will rise by between 0.05 per cent and 0.4 per cent, bringing MVRs to between 3.8 per cent and 4.3 per cent.
Variable and fixed rates on buy-to-let properties are also to increase. Buy-to-let variable rates are increasing by 0.5 per cent for all Managed Variable Rate loan-to-value bands, while buy-to-let new business fixed rates are increasing by 1 per cent.
Read more: Certain Irish mortgage holders to pay more from tomorrow after interest rate hike
According to PTSB, customers who already have approval for a fixed buy-to-let loan will have until October 27 to draw it down at the existing lower rate.
The lender’s fixed rates are to remain unchanged for now, remaining at between 3.9 per cent and 4.9 per cent, depending on the rate and the loan to value ratio chosen by each customer. PTSB claims fixed rates now account for 95 per cent of its new business, with just 5 per cent seeking variable rates.
Permanent TSB also pointed out that it has increased its deposit rate three times since November of last year, with the most recently announced change taking effect from today. It added: "The bank will continue to keep deposit rates under review."
The bank also announced it would be ending fee waivers on legacy current accounts no longer available to new customers. Until now, customers with the legacy accounts did not have to pay fees if they held at least €2,500 in their accounts per quarter. Alternatively, they can move to the Explore current account. which charges €6 a month and has a cash back feature.
Around 47,000 customers were actively using the fee waiver feature, which is being removed.
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