Thousands of homeowners who have mortgages with Permanent TSB are set to see their repayments rise from the end of next month after the bank announced that it was increasing its standard variable rate (SVR).
Up to 70,000 customers are believed to be affected by Permanent TSB’s decision to raise its SVR from 4.34% to 4.5%.
The increase will see homeowners fork out an extra €18 per month for every €100,000 borrowed.
With the average mortgage around €300,000, this will mean an extra €640 a year is required by homeowners in order to meet their mortgage repayments.
The move has been heavily criticised by politicians, with the European Central Bank rate remaining at a record low level of 0.25%.
The bank defended the decision, however, by saying it had kept its variable rate at the same level for the past three years.
Those with tracker mortgages will not be affected by Permanent TSB’s increase.