Permanent TSB has become the latest Irish lender to raise rates in response to the European Central Bank (ECB) changes.
The bank said on Thursday it is to increase its interest rates including fixed term mortgage interest rates and deposit rates.
It said the changes follow three rounds of interest rate increases from the ECB in recent months.
[ Irish monthly mortgage payments rose 12% ahead of ECB rate hikesOpens in new window ]
Interest rates on its home loan fixed rate products will rise by an average of 0.45 per cent.
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The increases will range from 0.05 per cent to 0.9 per cent depending on the length of the fixed term mortgage, the size of the loan and the size of the loan relative to the value of the property in question.
The bank also announced that it will raise interest rates payable on certain deposit accounts from 0.2 per cent to 1.15 per cent.
Bank of Ireland, AIB, ICS Mortgages, Finance Ireland and Avant Money have each increased rates on certain products since the ECB first moved in July. Permanent TSB had been expected to follow suit.
The bank said customers who have already received an offer letter will have 90 days (up until February 15th) to complete the drawdown of their loans at existing rates or prior to their current loan offer expiration, whichever date is the earliest.
There were no changes for customers on existing fixed rates and there were no changes to the bank’s variable rates for new or existing customers.
“For any customer applying for a mortgage over €250,000 the increases range from 0.05 per cent to a maximum of 0.45 per cent,” PTSB retail banking director Patrick Farrell said.
“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,” he said.
“We also recognise the need to recommence 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,” he added.
