According to the bank, over 70,000 customers will benefit from reductions to their Standard Variable Rate which is down 0.55 per cent and Managed Variable Rates down by 0.30 per cent.
They have also announced reduction in fixed rates for all existing customer and a reduction in 3 and 5 year fixed rates for new customers for mortgages over €250,000 with rates as low as 2.5 per cent
The new chief executive of Permanent TSB bank, Eamonn Crowley said that the move “combined enhanced competitiveness with increased fairness”
The bank is reducing its Standard Variable Rate from 4.50 per cent to 3.95 per cent and is also reducing its range of Managed Variable Rate from between 0.10 per cent and 0.30 per cent.
The bank said that what this means for customers is that someone with an average mortgage balance of €50,000 with a 10 year remaining term, a reduction of 0.55 per cent on the Standard Variable Rate will mean a reduction in annual mortgage repayments of €158 per year.
If their customers chose to move to the new 3 year fixed rate of 2.95 per cent, it would mean saving of €439 per annum for the term of the fixed rate.
For new mortgages over €250,000 fixed terms of either 3 or 5 years are available from 2.50 per cent or from 2.5 per cent respectively.
The changes to fixed rates will come into effect from Tuesday next, 4th August, with the exception of the 7 year fixed rate for existing customers, which will be available from September. The changes to the variable rates will be available from early September.
The announcement comes just a month after Mr. Crowley’s appointment as chief executive.
Speaking today, he said; “This move goes a long way to addressing the discrepancy which traditionally existed between our pricing for new and existing mortgage customers.
"Overall it combines enhanced competitiveness with increased fairness. We will continue to evolve our mortgage pricing strategy in this direction as we go forward in line with our ambition to further build trust with customers.”