Fianna Fáil Spokesperson on Finance Michael McGrath has said Permanent TSB needs to explain why it is not passing on its fixed mortgage rate cuts to its existing customers.

Deputy McGrath was speaking following cuts of between 0.10% and 0.15% across a range of the bank’s fixed rate mortgage offers. However, the cuts are not being made available to the bank’s existing customers.

“While I welcome all interest rate cuts, Permanent TSB has once again discriminated against its own customers by not extending interest rate cuts to them. For example, new mortgage customers of the bank can avail of fixed rates as low as 2.95% whereas the best fixed rate available to an existing customer is 4.2%.

“Irrespective of how much equity an existing Permanent TSB borrower has in their home, the best fixed rate offer they can get from the bank is 4.2% whereas new customers can now avail of a range of fixed rate offers of around 3%. This is deeply unfair on the bank’s existing customers and can only be described as discriminatory.

“For a long period, the bank was offering no fixed rate options for customers and this is something I challenged them on when they came before the Oireachtas Finance Committee. They subsequently introduced fixed rate offers of 4.2% and 4.3% in what seemed like a ‘tick the box’ exercise.

“I understand Permanent TSB is facing significant challenges. I want to see the bank provide badly needed competition in the Irish mortgage market. Treating its existing customers as second class citizens in this manner is not the way to build a profitable and sustainable future for the bank.

“I would call on Permanent TSB to ensure that all rate reductions apply to both new and existing customers. This is an issue I will be taking up with the Bank and the Central Bank,” concluded McGrath.