Permanent TSB has announced a significant cut to its fixed-rate mortgage products after receiving approval from the Central Bank of Ireland to use new IRB (Internal Ratings Based) mortgage models.
The approval allows PTSB to reduce the risk weighting on its residential mortgage book to 32.8% by the end of June 2025, down from 36.4%. The new models, submitted on May 30, 2025, will become operational from January 30. As a result, total risk-weighted assets are expected to fall by about €0.7 billion, from roughly €10.9 billion to €10.2 billion.
This improvement strengthens the bank’s capital position. PTSB’s CET1 ratio is projected to rise to 16.6% on a pro-forma basis, compared with 15.5% previously. This is well above the bank’s total CET1 requirement of 10.69%.
Following this approval, PTSB has reduced fixed-rate mortgage rates by up to 0.45% with immediate effect. The cuts apply to three, four, five and seven-year fixed-rate terms for both new and existing individual customers.
The largest reduction is on the seven-year fixed rate for loans with a loan-to-value ratio of 80%–90%, now priced at 3.60%. On a €200,000 mortgage over a remaining 20-year term, this translates to a saving of about €47 per month.
Customers already approved for a mortgage but yet to draw down will automatically receive the lower rates. Those at pre-approval stage will also benefit. These reductions sit on top of PTSB’s existing 2+2 cashback offer, giving customers up to 4% cashback over the life of the mortgage, subject to conditions.