PTSB puts pressure on rivals by dramatically dropping mortgage rates

PTSB has put pressure on its rivals by dramatically dropping the rates of its mortgage products across the board. 

This is the third rate cut from PTSB in the last year, with the rates of their two, three four, five and seven-year fixed packages dropping by up to 1%, according to Independent.ie.

Some customers opting for their three-year fixed rate mortgage will see a drop of 1.05% to a low of 3.8%. The percentage drop in rates depends on the size of loan.

Their green mortgage rate aimed at owners of energy-efficient houses, is dropping to 3.5% if the loan to value is above €250,000.

The new rates will come into effect at the end of this month.

It's thought the PTSB cuts will put pressure on other major lenders to similarly drop their rates. It's also thought the ECB will introduce a further across-the-board interest rate cut in June.

This news comes as the rate of inflation across Europe continues to fall.