PERMANENT TSB HAS announced that it is increasing rates for customers taking out new fixed rate mortgages. 

The bank is raising interest rates on home loan 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 fixed term, the size of the loan, and the size of the loan relative to the value of the property,” a statement released by the bank read. 

The hike in fees won’t affect mortgage customers with an existing fixed rate, and the bank has clarified that there will be “No change to variable rates for new or existing home loan customers”. 

Customers who have an offer letter from TSB prior 18 November of last year have until 14 April to complete the draw down of their mortgage in order to avail of the existing rates,”or prior to their current loan offer expiration, whichever date is the earlier”, TSB stated. 

Therefore, if these customers draw down after 15 February, the new rates at that time will apply. 

Meanwhile tracker mortgage customers have been told that their rates will continue to “reflect the current ECB rate, in line with the specific terms and conditions of the loans”. 

The bank said the changes announced today follow four rounds of interest rate changes from the European Central Bank (ECB) in recent months, totalling 2.5%.

 ”This is Permanent TSB’s second fixed rate change in the period, with the first rate change announced in November 2022 being a weighted average increase of 0.45%,” it added. 

Last month the ECB slowed its record pace of interest rate hikes slightly, joining other central banks around the world in reinforcing a crackdown on inflation. 

The bank raised interest raised by 0.5%, a smaller hike than previous ones, but stressed that the rates would still “have to rise significantly”. 

Following the announcement, Bank of Ireland announced an increase in rates for tracker mortgage customers of 0.5%. 

Customers are advised to contact the bank for information on the full impact that these changes will have on their individual circumstances, and they are further advised to seek independent financial advice.