Existing customers should benefit from same rate as new customers
The 0.5% reduction in the standard variable rate charged by Permanent TSB to its mortgage holders is a welcome step in the right direction but the bank should go further and charge existing customers the same rate as is being offered to new customers, according to Fianna Fáil Finance Spokesperson Michael McGrath.
Deputy McGrath stated, “For the past number of months, Fianna Fáil has been highlighting the blatant unfairness in the exorbitant standard variable rate charged by Permanent TSB to its mortgage holders. The Dáil debated a private members’ motion brought forward by the party on this issue in March and this helped to put the spotlight on the issue. The 0.5% reduction by the bank today is to be welcomed.
“However, I believe the bank needs to go further. The bank currently offers new variable rate customers (with a loan to value ratio of not more than 80%) a rate of 3.69%. However, even after today’s rate reduction, the bank still plans to charge its existing variable rate customers 4.69%. I believe it is inherently unfair of the bank to charge new customers an interest rate a full 1% more than it charges its existing customers especially given the inability of the bank’s customers to move to another bank.
“The standard variable rate of 4.69% that the bank will now charge is still out of line with market rates and in particular the other State-supported banks. We are therefore calling on the bank to further reduce its variable rate to bring it into line with the rate it is offering to new customers.”