Permanent TSB is introducing a number of changes to interest rates, including fixed term mortgage rates and deposit rates.
The changes follow three rounds of interest rate increases from the European Central Bank in recent months.
The bank said there would be no changes for customers on existing fixed rates, and there are no changes to the bank’s variable rates for new or existing customers.
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However, Permanent TSB will raise interest rates on its suite of home loan fixed rate products by an average of 0.45 per cent.
The higher rates will add around €60 a month to the repayments on a typical new fixed rate mortgage of €250,000.
The increases will range from 0.05 per cent to 0.9 per cent depending on the length of the fixed term, the size of the loan and the size of the loan relative to the value of the property in question.
Customers who have received an offer letter will have 90 days - up until February 15 - to complete the drawdown of their loans at existing rates or prior to their current loan offer expiration, whichever date is the earliest.
Customers on a Standard Variable Rate (SVR) who transferred to Permanent TSB earlier this month from Ulster Bank are benefitting from Permanent TSB’s lower SVR rate with a 0.35 per cent reduction in their previous Ulster Bank SVR rate.
The Ulster Bank variable rate is 4.3pc, but Permanent TSB has a rate of 3.95pc. This amounts to a saving of more than €200 a year on every €100,000 borrowed.
The bank has also confirmed that existing customers can access the same fixed rates as new customers, with the exception of one introductory offer.
Permanent TSB is also announcing that it will raise interest rates payable on certain deposits from 0.2 per cent (Regular Saver Online/21-day Regular Saver) to 1.15 per cent (5-year fixed term).
Patrick Farrell, Retail Banking Director: “For any customer applying for a mortgage over €250,000, the increases range from 0.05% to a maximum of 0.45%.
“We are seeking to balance the reality of the increased interest rate environment with the need to provide a competitive offering to our mortgage customers and to provide certainty, in particular, to those customers who are already advanced on their mortgage journey.
“We also recognise the need to re-commence increasing deposit rates for savers and we are pleased to start this today by introducing increases to our Regular Saver and Fixed term deposit accounts".
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