The standard variable rate (SVR) mortgage customers of Permanent TSB must benefit from the split of Permanent TSB announced by the Minister for Finance today, according to Fianna Fáil Finance Spokesperson Michael McGrath.
Deputy McGrath stated, “The restructuring of Permanent TSB announced today provides an opportunity to bring about a reduction in the interest rate charged by the bank on its standard variable rate mortgages. The Government continues to preside over a situation where State-owned Permanent TSB is charging a standard variable rate of 5.19% to its existing mortgage customers – that’s over 2% higher than another state-owned bank AIB.
“Fianna Fáil put the spotlight on this issue with a private members’ motion in the Dáil last month. Since then, I have been contacted by many Permanent TSB mortgage-holders who have explained the devastating financial effect the bank’s rate is having on them. The Minister must ensure that the restructuring of the bank results in a reduction in the standard variable interest rate.
“The penal interest rate being charged is crippling thousands of ordinary Permanent TSB customers around the country, who are effectively trapped because they can’t transfer their mortgage to other banks.
“If Permanent TSB is to become a viable, retail bank meeting the needs of the economy, it will need the goodwill of its existing customers and of wider society. It is in the bank’s interest to address the anomaly of its standard variable rate and to give some much needed relief to hard pressed families.”