PTSB hikes fixed mortgage rates

People who already have an offer letter at the old lower rate have 90 days to draw down their loan.

PTSB HAS HIKED its mortgage rates for new fixed-rate contracts.

The bank’s rates will rise by a weighted average of 0.3 percentage points.

Existing fixed-rate customers will not be affected, the bank said this morning.

The bank’s variable rates for new and existing customers are also not affected.

The changes kick in from today.

The exact increases – ranging from 0.2 to 0.35 percentage points – will depend on the length of the new fixed term, the size of the loan and the size of the loan relative to the value of the property (the metric commonly known as loan-to-value).

It comes after two recent rate increases totalling 0.5 percentage points from the European Central Bank (ECB), PTSB said.

People buying a home who have already received an offer letter from PTSB now have 90 days – up to 19 January 2027 – to draw down their loan at the existing lower rate.

For a five-year fixed rate at 60-80% loan-to-value, the new rate will be 3.9%, up from 3.6%.

For a three-year fixed rate at 60-80% loan-to-value, the new rate will be 4.05%, up from 3.75%.

So-called “green” mortgages for homes with an A or B energy rating will also go up. A five-year green mortgage of €250,000 or more at more than 80-90% loan to value will rise to 3.85% from 3.5%.

PTSB said customers should contact it for information on how the changes will affect them.

Many analysts expect the European Central Bank to hike interest rates again in December as it tried so rein in inflation.

ECB rate hikes hit customers on tracker and variable mortgages first, but, as PTSB’s announcement shows, can also feed through to higher fixed rates.

With reporting from AFP.

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