permanent tsb raise standard variable rate by.5%
In move that has angered mortgage holders and surprised the market ptsb has decided to increase their standard variable rate to 3.2%. The lender is believed to be losing money on tracker mortgages and this move, at the expense of over 50,000 customers ,is seen as a means of counteracting these loss making trackers.
It is expected that many mortgage holders will look at possible alternatives in the market . Mortgages.ie has noticed significant interest from existing ptsb mortgage holders in mortgage switching.
In recent months we have seen a number of foreign owned mortgage lenders not passing on reductions in line with ecb announcements.Banks are not obliged to pass on reductions to variable rate mortgage holders .
Interest rates are historically low at the moment and like all markets there are both upward and downward movements . Over the next few years we expect rates to rise as economies move out of recession.Ireland may be slower to move out of recession due to the enormous problems we face both on the current deficit in our finances and in regard to the losses covered by the state in the banking system
It is our view that some lenders are currently offering attractive fixed rates to homeowners and we strongly recommend that mortgage holders consider fixing options as they review their finances.