Permanent tsb tip toe back into market

21 January 2012
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Permanent tsb have significantly improved their product offering for buyers with a 20% deposit.Their new <80% ltv product is well priced at 3.69%, not as cheap as some lenders but significantly cheaper than others.It looks as of their strategy is to closely track Bank of Ireland's rate.

They continue to offer mortgages up to 90% at a variable rate of 5.19%.

They also offer a fantastic 5 year fixed rate for 50% loan to value mortgages at 3.7%

This is good news for home buyers as it signals a return to the market of a once dominant player.

As for the future of the permanent tsb group, nobody knows.They are holding billions of euro in low cost tracker mortgages which need to be stripped out of the Company or alternatively they need to secure funding at ECB rates, which could happen as part of a negotiated bank bailout.

Ultimately the bank will merge with another lender.The obvious choice is Ulster Bank although this would mean significant branch closures on one hand , but on the other would create a really powerful third force in banking. especially with the profitable Life Company being part of the deal.