Friday, 24 July 2009

Permanent TSB raises variable mortgage rates

I see that Permanent TSB is set to raise its Standard Variable Rate for mortgages by 0.5% from next Monday, thus reversing the effect of some of the recent European Central Bank base rate cuts. They have blamed the high cost of funds and tightening margins in the lending market.

Even before this rate increase, Permanent TSB's Standard Variable Rate was nowhere near the most competitive in the market.

I sympathise with any Permanent TSB mortgage customer with a loan of more than 92% of their property's current value. Such customers (including those in negative equity) have no option but to remain with Permanent TSB.

Anyone below 92% at least have the option to move to another lender.


Keith said...

I'm sure this is a silly question but what is the significance of 92%?

Is that just part of the terms and conditions of a mortgage above that value?

Liam D. Ferguson said...

Hi Keith,

Thanks for the question.

If you're on a Permanent TSB mortgage and your loan is less than 92% of the property's current value, you could consider switching to another lender offering better rates.

If your loan is more than 92% of the property value, no other lender will take you at present.

Hope that clarifies it.

Regards, Liam

Helen said...

Hi Liam, I left a comment in your 2007 comment on PTSB trackers. My complaint against PTSB was not upheld by the financial ombudsman. I can now appeal to the high court. Do you know how I proceed with that? I probably need to talk to a lawer or solicitor. Would love to do it but wonder if I am getting in too deep?.
Thanks for the advice on your blog !

Liam D. Ferguson said...

Hi Helen,

Yes if you want to proceed to the High Court, you would need to talk it over with a solicitor, who in turn will appoint a barrister to act for you.

If you have a chat with a solicitor with commercial experience of this nature s/he should be able to tell you (a) if it's worth while and (b) what the costs might be.

Regards, Liam