Permanent TSB has announced a second increase in interest rates on its fixed-rate mortgage products.
From Monday, the new rates will apply to customers who take out a new fixed-rate product.
The bank said it will raise rates on its range of fixed-rate mortgages by a weighted average of 0.51%. The increases will range from 0.05% to 0.8% depending on the length of the term, the size of the loan and the loan-to-value ratio.
Customers who currently hold a mortgage offer letter from November 18 will have until April 14 to complete the drawdown of their loan at existing rates.
The bank said there will be no change to its variable rates while the rates for tracker mortgages continue to reflect the current European Central Bank (ECB) rate.
The increase follows four rounds of interest rate rises from the ECB, totalling 2.5%, in recent months. The ECB is to meet again next month where they are expected to raise rates further with a sixth increase expected before the summer.
This is Permanent TSB’s second fixed rate change in the period, with the first-rate change announced in November being a weighted average increase of 0.45%.
AIB has also made two interest rate increases adding 1% to its fixed-rate products. Bank of Ireland added 0.25% to its fixed-rate products.
Irish banks have been slow to pass on the ECB rate hikes in contrast to their European counterparts. It has resulted in average mortgage rates in Ireland moving from being amongst the most expensive in Europe to below average.
Figures from the Central Bank of Ireland this week show the weighted average interest rate on new Irish mortgage agreements at the end of November was 2.57%. In the same period, the equivalent eurozone average rose by 19 basis points to 2.84%.
