75,000 to benefit as Permanent TSB cuts SVR by 0.5pc from 5.19% to 4.6%.

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swauna78

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They went a little further than 0.25% it seems at 0.5% but it's still not enough:

http://www.independent.ie/business/...s-variable-interest-rate-by-05pc-3096571.html

LENDER Permanent TSB has cut its standard variable rate by 0.5pc for resident mortgage customers.

The cut will mean a reduction to 4.69pc from 5.19pc in the rate for 74,500 customers.

The bank’s new chief executive Jeremy Masding also said it will keep all lending rates under regular review. He added the move was part of the strategy to create a new, viable banking business focussed on the retail market following on from approval to do so from the EU/ECB/IMF troika.

“We are setting out to create a more competitive bank, that has a viable future in this market and that treats its customer fairly,” he said.
“This move is an important statement of our intent.”
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05% cut from 14th May announced.

http://www.breakingnews.ie/ireland/permanent-tsb-reduces-mortgage-rate-by-05-549743.html

The cut means that a person with a mortgage of €200,000, the reduction will mean a reduction in monthly mortgage repayments of €52.05.

A bank said a total of 74,500 customers will benefit from the move.

Mr Masding said that the move was part of the strategy to create a “new, viable banking business” focussed on the retail market.

He said: “We are setting out to create a more competitive bank, that has a viable future in this market and that treats its customer fairly. This move is an important statement of our intent.”
Click to expand...

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“We are setting out to create a more competitive bank, that has a viable future in this market and that treats its customer fairly,” he said.
“This move is an important statement of our intent.”

Treating its customers who are trapped with them because of an unfunctioning market as unfairly as they have over the past number of years is precisely the reason why their intention to carve out a viable future for the bank is flawed!

There has been nothing but bad press in relation to PTSB in the past few months and rightly so. They have lost the trust and loyalty of thousands of existing customers and countless potential customers.

The bottom line is that if the market was functioning as it should all of us trapped on PTSBs high SVR would switch to another lender.
 
I totally agree.. I'll be reminding my children never to do business with Permanent TSB .
They know you can't switch so have continued to keep rates over 2% above their competitors. Dropping by 0.5% now is too little too late. Damage is done. As soon as its possible to switch to a different lender I will be doing so. They could spend all the money they want on their advertising campaigns as they did in the boom,but their reputation is as damaged as Fianna Fail and people will never forget....
 
Meanwhile on sky news it's reported 2 UK banks increasing their svr to 4%, with their base rate at .5% (I think!) maybe all Irish banks will be looking at whether their rates are profitable and fair. I wonder is it only a matter of time before Boi and AIB raise their rates
 
michaelm said:
Michael McGrath on Drivetime credited AAM, amongst others, in this regard.
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Yes, he said that the cut was a tribute to consumer activism , Askaboutmoney and RTE's The Consumer Show.

He also focussed on the 1% difference between the rates charged to new customers and the rates charged to existing customers.
 
It's great to see support for this situation. Great work from everyone involved. I've been on a 5 year fixed rate @ 5.1% with PSTB for over 4.5 years. I fixed at the height of 'high' interest rates and just before the banking crisis. It's been a long and painful road and I'm hoping for more favourable rates when I come off the fixed. As already mentioned, the new fixed rates are simply priced out of the market and are prohibitively expensive.

Thanks,
digweed
 
Hi Digweed,

A colleague here at work has a 5 year fixed rate with ICS @ just under 5% completing on May 31st, and she was enthused when I pointed out the variable rates published by Brendan yesterday, which was 3.85% for ICS I think. When she contacted ICS to confirm this, they advised that per her mortgage contract she will revert to a tracker + 1.25, rather than a SVR. So she'll be dropping from 5% to 2.25% from June 1st and will save €300 per month in interest. It's worth checking out your original mortgage agreement terms with PTSB. 2007 seems to be a common time for trackers being included in the terms.
 
Thanks for the info Jkrnax.
I don't want to go off-topic, but yeah the tracker piece is something I'm looking into. I was offered a tracker on my renewal, but did not take it [rates had done nothing but increase right up to the time I fixed. They fell as soon as I fixed, but that's another story :) ]
I was told that if I was offered a tracker previously, I should be offered a tracker when I come off the 5 yr fixed. That said, I assume the tracker will be X + ECB rate, where PTSB will determine what X is. I don't think it will be 1.25% + ECB but one can always dream.

Thanks,

digweed
 
I am amazed that this has actually happened, it must be something to do with the government moving all the trackers over into a bad bank, because there is absolutely no way PTSB would do this unless they had to. I think a 1% reduction would have been fairer to put it in the same bracket as other banks, but it is a welcome start. I am still saving all my money up in order that I have enough equity to get another mortgage - with another bank!
 
I have just been online and the cut is not reflected- my interest is still at 5.19%........looks like another call needs to happen!!
 
I rang them at the time and was told that the cut would kick in on the 14th of May but based on my repayment date 28th of the month that I would not see the reduction until the June repayment - so even though it should show the new reduced rate on their system (hopefully any day now), it probably won't change your repayment this month.
 
My understanding was the interest is calculated on a day to day basis so therfore the first repayment will probably have both rates in it's workings but the full reduction won't be until the June repayment.
 
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