In somewhat of a surprise move PTSB is cutting its four-year fixed rate for the second time in just three months while also introducing a new green rate product.
After almost two years of relentless mortgage rate hikes, it's certainly nice to be talking about mortgage rate decreases as opposed to increases for a change.
PTSB - the country's third biggest mortgage lender - is cutting the rate on one of its most popular mortgage products again while also expanding its choice of green rates.
But will it put pressure on the other main lenders to follow?
Lower fixed rate
PTSB is cutting its four-year fixed rate by up to 0.30 percentage points from today.
Its four-year rate will now range between 3.80% and 4.05% depending on the loan-to-value (LTV) ratio or the amount of equity in the property.
It comes on the back of a 0.40 percentage point cut to the same rate back in December.
For someone taking out a mortgage of €250,000 over 30 years, the latest reduction will save them around €45 a month.
New green rate
PTSB is also introducing a new three-year 'green' rate for those buying a home with an A or B energy rating. This complements its five-year green rate which it launched in 2022.
The new green rate will range from 3.80% to 4.35% depending on the LTV and the size of the mortgage with those borrowing over €250,000 (a so-called 'high-value' mortgage) being able to avail of a lower rate. However, given the relentless rise of property prices over the past few years, the majority of mortgages are now well over this size.
This rate also comes with PTSB's 2% cashback deal which gives mortgage holders 2% of their mortgage amount back in cash after the drawdown of their loan.
|
Rate |
Loan to Value |
Old Rate |
New Rate |
Decrease |
Cashback |
|
4-year fixed |
0% – 60% |
4.00% |
3.80% |
-0.20% |
No |
|
4-year fixed |
60% – 80% |
4.10% |
3.90% |
-0.20% |
No |
|
4-year fixed |
80% – 90% |
4.35% |
4.05% |
-0.30% |
No |
|
Green 3-year fixed |
0% – 60% |
New |
4.00% |
Yes |
|
|
Green 3-year fixed |
60% – 80% |
New |
4.10% |
Yes |
|
|
Green 3-year fixed |
80% – 90% |
New |
4.35% |
Yes |
|
|
Green 3-year fixed (high value) |
0% – 60% |
New |
3.80% |
Yes |
|
|
Green 3-year fixed (high value) |
60% – 80% |
New |
3.90% |
Yes |
|
|
Green 3-year fixed (high value) |
80% – 90% |
New |
4.15% |
Yes |
Who are the rates available to?
The new rates are only available to new customers - whether that be first-time buyers, movers or switchers.
So if you’re a tracker customer or on a variable rate with PTSB and were hoping to save money by moving to one of these rates, you're not in luck.
And if you’re on a fixed rate with PTSB that’s due to end over the coming months, you need to be prepared to roll over onto a much higher rate. As these rates aren't open to you either.
PTSB’s fixed rates for its existing customers who are looking to re-fix are currently between around 4.15% and 5% though they may fall slightly later in the year. You can read more about our warning to fixed-rate customers here.
More rate cuts to come?
It’s highly likely the European Central Bank (ECB) will start cutting interest rates sometime later this year given the recent fall in inflation. Probably from around June or July. And rates could be cut by up to one percentage point in total by the end of the year.
Tracker customers will benefit almost immediately from any ECB cuts.
But for everyone else, it’s less clear cut.
The main lenders have passed on less than half of the ECB rate hikes to date. So it’s unlikely AIB, Avant Money, Bank of Ireland or PTSB will respond widely to any rate cuts by the ECB immediately. And then it may only be for new customers and not existing customers.
However today's move by PTSB - though limited to new customers and a small number of rates - is a positive and might put pressure on the banks to respond sooner rather than later to any ECB cuts.
Compare the market
Despite the rate cuts from PTSB today, cheaper rates from other lenders may still be available.
In general, PTSB has hiked its rates more than AIB and BOI in particular over the past two years.
You can compare all rates across all lenders using our free mortgage calculator. Then when it's time to apply for your mortgage, you can do so with the help of our in-house mortgage broker service.
