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In a bold move to recalibrate its market stance and address the evolving needs of new homeowners, Permanent TSB (PTSB) has announced a reduction in its four-year fixed mortgage rates by 0.3%, effective immediately. This strategic decision marks the second rate cut since December, underscoring the bank’s commitment to remaining competitive in a fluctuating financial environment. With rates now ranging from 3.8% to 4.05%, depending on the loan-to-value ratio, new customers can anticipate savings of up to €44 monthly on a €250,000 mortgage over a 30-year term.

Simultaneously, PTSB is propelling its sustainability agenda forward with the introduction of a pioneering three-year fixed “green” mortgage product, tailored for homes with a Building Energy Rating (BER) of A1 to B3. This initiative not only highlights the bank’s dedication to environmental stewardship but also positions it as a forward-thinking player in green finance, catering to a growing segment of eco-conscious consumers.

These adjustments arrive amidst speculation that the European Central Bank (ECB) may lower interest rates by June, following a period of heightened rates aimed at curbing inflation. While this prospective shift could offer relief to some mortgage holders, the impact on fixed and variable-rate customers remains uncertain, with financial experts signalling a potentially complex horizon for those navigating the mortgage market.

The introduction of PTSB’s green mortgage, especially, stands out as a testament to the bank’s innovative approach, aiming to incentivize energy-efficient housing in Ireland. With green mortgages accounting for 30% of the bank’s new lending last year, PTSB is not only responding to market demands but is also shaping the future of sustainable living.

This strategic pivot by PTSB occurs against a backdrop of robust financial performance, with the bank reporting a significant increase in its underlying profit before tax for 2023. Despite this, the lender faces challenges, including a decrease in its share of the new mortgage market and a market reaction that saw its shares decline by 12.5%. Nevertheless, with a total performing loan book of €20.9 billion, bolstered by growth in business banking and consumer finance, PTSB is navigating these turbulent waters with an eye towards sustainable growth and customer satisfaction.

As the Irish mortgage landscape continues to evolve, PTSB’s recent moves underscore the bank’s adaptability and commitment to addressing the diverse needs of its customers, all while contributing to a greener future. With the potential changes in ECB rates looming, the industry watches closely, ready to adapt to the shifting tides of financial policy and market demand.

Author: Fran Cooke


Fran specialises in finance products – Pensions, Life & Mortgages advising both individuals and corporates throughout Ireland. Fran holds qualifications and accreditations from Maynooth University and the Life Insurance Association (LIA) in Financial Services. Fran recently completed the Special Investment Advisor (SIA) course and is currently refreshing his pensions knowledge with the Retirement Planning Adviser (RPA) accreditation.