PTSB Mortgage Rate Cuts 2026: What You Need to Know
If you’re an Irish homeowner with a PTSB mortgage, the January 2026 rate cuts probably grabbed your attention. The bank slashed fixed rates by up to 0.45% and dropped its standard variable rate by 0.55% to 3.95%, a move that affects roughly 35,000 customers. This article walks through the new rates, what they mean for your monthly payments, and how to decide between fixing now or waiting for further drops.
Latest rate cut amount: Up to 0.45% on fixed rates ·
Effective date: 20 January 2026 ·
SVR after cut: 3.95% ·
Customers benefiting from SVR cut: c. 35,000
Quick snapshot
- PTSB cut fixed rates by up to 0.45% on 20 Jan 2026 (Permanent TSB – official notice)
- SVR reduced by 0.55% to 3.95% (Permanent TSB)
- About 35,000 customers on SVR benefit (Permanent TSB)
- Whether mortgage rates will drop to 3% again in the near future (Bonkers.ie – market commentary)
- Exact timing of future rate changes by PTSB or other lenders (MortgageLine forecast)
- How quickly lower rates will pass to existing customers on fixed terms (MortgageLine forecast)
- Jan 2025: PTSB cut fixed rates by up to 0.95% (Bonkers.ie rate history)
- Sept 2025: Further reduction on fixed-term 2–7 year mortgages with 80–90% LTV (Bonkers.ie)
- 20 Jan 2026: New cuts take effect (Bonkers.ie rate history)
- Forecasts suggest possible further gradual rate decreases in 2026 (MortgageLine – forecast)
- ECB decisions will influence direction (MortgageLine – forecast)
- Existing customers on fixed terms may need to wait until term ends to benefit (MortgageLine – forecast)
Here is a summary of the key numbers from PTSB’s rate reduction.
| Label | Value |
|---|---|
| Latest rate cut amount | Up to 0.45% on fixed rates |
| Effective date | 20 January 2026 |
| SVR after cut | 3.95% |
| Customers affected by SVR cut | c. 35,000 |
| Previous rate reductions (2025) | Up to 0.95% |
Will mortgage rates drop to 3% again?
Will mortgage rates go down in Ireland in 2026?
- PTSB cut fixed rates by up to 0.45% in January 2026 (Permanent TSB – official notice)
- Mortgage rate forecasts from industry sources such as MortgageLine indicate uncertainty about the pace of further cuts
- Historical context: ECB has held rates steady, but markets expect gradual easing later in 2026 (European Central Bank – policy statements)
- Probability of 3% rates in the short term is low; most analysts expect further modest reductions, not a return to historic lows (Bonkers.ie – rate outlook)
Irish homeowners hoping for 3% mortgages in 2026 will likely be disappointed. The ECB’s cautious approach and PTSB’s already narrowed margins mean further cuts will be gradual, not dramatic.
The implication: if you’re waiting for a 3% fixed rate before deciding, you could be waiting a long time. The current PTSB offerings are the lowest they’ve been in over a year, and locking in now might be smarter than holding out.
What are TSB mortgage rates at the moment?
What are PTSB Green mortgage rates?
- PTSB’s 5-year Green Mortgage (>80-90% LTV, BER A1-B3) fell by 0.20% to 3.60% (Permanent TSB)
- PTSB’s 5-year Green Mortgage of €250,000 or more (>80-90% LTV) fell by 0.20% to 3.50% (Permanent TSB)
- Green Mortgage rates are available for properties with BER A1 to B3 and offer lower rates than standard fixed products
What are PTSB LTV mortgage rates?
Below are the new fixed rates for different LTV bands after the January 2026 cut.
| Fixed term | LTV band | New rate (after Jan 2026 cut) |
|---|---|---|
| 7-year | >80-90% | 3.60% (down 0.45%) |
| 5-year | >80-90% | 3.75% (down 0.30%) |
| 4-year | >60-80% | 3.25% (down 0.15%) |
| 3-year | >80-90% | 3.90% (down 0.15%) |
| 5-year (higher-value, €250k+) | >80-90% | 3.60% (down 0.25%) |
| 3-year (higher-value, €250k+) | >80-90% | 3.70% (down 0.15%) |
Four fixed terms, one pattern: longer terms and lower LTV bands get the largest cuts, while higher-value mortgages (€250,000+) also benefit from deeper reductions. The catch: not all borrowers qualify for the best rates, especially those with smaller mortgages or higher LTVs.
Should I fix for 2 or 5 years now?
Factors to consider when choosing a fixed term
- Recent PTSB rate cuts: 2-year fixed rates were reduced by up to 0.55% (from 2025 announcement) (Permanent TSB)
- Advice from Boon Brokers mortgage advisers suggests that a two-year fix offers flexibility in a falling rate environment
- Trade-offs: 2-year fix gives you freedom to renegotiate sooner, but a 5-year fix locks in a low rate if rates rise unexpectedly
- Your loan-to-value ratio heavily influences which rates are available – higher equity means better rates
Borrowers who value flexibility should lean toward a 2-year fix, especially if they expect further ECB cuts. Those who want certainty and can afford the current rate may prefer a 5-year fix to lock in the drop.
Why this matters: with the current rate cuts, the gap between 2-year and 5-year fixed rates is narrow. For a borrower with a 80-90% LTV mortgage, the 2-year rate is not much higher than the 5-year, making the shorter term an attractive hedge against future rate drops.
Can a 70 year old woman get a 30-year mortgage?
Can a 57 year old get a 25 year mortgage?
- Age limits in Irish mortgage lending typically require the mortgage to be repaid by age 70–75 (John Charcol mortgage specialists)
- A 70-year-old seeking a 30-year term would end at age 100, which is not permitted by most lenders
- Exceptions: some lenders may offer older borrowers a shorter term or a lower LTV to reduce risk
- A 57-year-old can get a 25-year mortgage if they can demonstrate sufficient retirement income to cover repayments (Boon Brokers)
The pattern: Irish lenders are conservative on age limits, but they are not absolute. Borrowers over 70 can still get a mortgage, just not a 30-year one. Alternatives include shorter terms, joint applicants, or using a lower LTV to secure approval.
What is the current lowest mortgage rate in Ireland?
How do PTSB rates compare to AIB and other lenders?
- Lowest rates from comparison sites (Doddl.ie and Bonkers.ie) as of Jan 2026 show PTSB’s 4-year fixed at 3.00% for switchers is among the most competitive
- PTSB’s standard fixed rates after cuts: 3.25% to 3.90% depending on term and LTV (Permanent TSB)
- AIB currently offers 3.30% for a 3-year fixed (60-80% LTV) (AIB – mortgage rates)
- Bank of Ireland’s lowest fixed rate is 3.40% for a 2-year fix (Bank of Ireland – mortgage rates)
- Importance of LTV and property type: the best rates are reserved for lower LTVs and higher loan amounts
PTSB’s switcher offer at 3.00% (4-year fixed) is the standout deal in the market right now, but it’s only available to borrowers moving their mortgage from another lender. Existing PTSB customers cannot access that rate.
The implication: if you’re not a switcher, you’ll likely pay more. For new buyers, PTSB’s standard rates are competitive but not the absolute cheapest. Compare LTV bands carefully – a 5% difference in equity can mean a 0.5% rate difference.
Upsides
- PTSB’s January cuts make fixed rates more affordable for both new and existing customers
- Green Mortgage rates reward energy-efficient homes with lower rates
- Switcher offer at 3.00% 4-year fixed is one of the lowest in the market
- Rate cuts apply to a wide range of LTV bands and loan sizes
Downsides
- Existing customers on fixed terms cannot switch to the new lower rates without penalty
- Best rates are reserved for higher loan amounts (€250,000+) and lower LTVs
- Age limits restrict older borrowers from long-term mortgages
- Future rate cuts may not be as deep – 3% rates are unlikely in the near term
Timeline of PTSB rate changes
- January 2025: PTSB reduces fixed rates by up to 0.95% (Bonkers.ie rate history)
- September 2025: Further reduction on fixed-term 2–7 year mortgages with 80–90% LTV (Bonkers.ie)
- 20 January 2026: PTSB cuts fixed rates by up to 0.45% and SVR by 0.55% (Permanent TSB)
- 2026 outlook: Forecasts suggest possible further gradual rate decreases (MortgageLine)
Clarity: Confirmed facts vs unresolved questions
Confirmed facts
- PTSB reduced fixed mortgage rates by up to 0.45% effective 20 January 2026 (Permanent TSB)
- Standard Variable Rate reduced by 0.55% to 3.95% (Permanent TSB)
- About 35,000 customers benefit from the SVR cut (Permanent TSB)
- Green Mortgage rates were cut by up to 0.20% (Permanent TSB)
- PTSB’s switcher offer includes a 4-year fixed at 3.00% (Permanent TSB – switcher page)
What’s unclear
- Whether mortgage rates will drop to 3% again in the near future (MortgageLine – forecast)
- Exact timing and magnitude of future rate changes by PTSB or other lenders
- How quickly lower rates will pass to existing customers on fixed terms
What the experts say
We are committed to offering competitive rates to our customers. These reductions reflect our aim to support borrowers in a changing market.
Permanent TSB spokesperson
Given current uncertainty, a two‑year fix may offer flexibility. You can re‑evaluate your options sooner without incurring a breakage fee.
Many lenders have a maximum age at term end of 70 or 75, but alternatives exist for older borrowers, including shorter terms and joint applications.
Summary
PTSB’s January 2026 rate cuts are a genuine win for Irish mortgage holders, but they come with strings attached. The best deals are reserved for switchers and those with lower LTVs, while existing customers on fixed terms must wait. For the typical Irish homeowner, the choice is clear: if you’re coming off a fixed term this year, consider a 2‑year fix to stay flexible, or a 5‑year fix to lock in the current low. For older borrowers, a shorter term or joint application may be the only path to a mortgage.
mortgages.ie, mortgages.ie, ptsb.ie, ptsb.ie, bonkers.ie, bonkers.ie, ptsb.ie, irishexaminer.com, irishtimes.com
Frequently asked questions
When do the new PTSB mortgage rates take effect?
The new rates took effect from the start of business on Tuesday, 20 January 2026 (Permanent TSB).
What is the difference between fixed and variable mortgage rates?
A fixed rate locks your interest rate for a set period, providing certainty. A variable rate can change at any time, usually in line with the ECB rate. PTSB’s standard variable rate is now 3.95% after the January cut (Permanent TSB).
Can I switch my mortgage to a lower rate before my fixed term ends?
Usually, you will have to pay a breakage fee to exit a fixed term early. Some lenders allow a switch with a penalty, but it’s rarely worthwhile unless the rate drop is significant. Check your contract or speak to a broker (Boon Brokers).
How does my loan-to-value ratio affect the mortgage rate I qualify for?
LTV is the ratio of your mortgage amount to the property value. Lower LTV (i.e., bigger deposit) generally qualifies you for lower rates. PTSB’s best rates are for LTV bands of 60–80% (Permanent TSB).
What is the best mortgage rate available right now in Ireland?
As of January 2026, the lowest rate on the market is PTSB’s 4-year fixed switcher offer at 3.00% (Permanent TSB). For non-switchers, rates start at 3.25% for a 4-year fix with 60–80% LTV.
Are PTSB Green mortgage rates lower than standard rates?
Yes, Green Mortgage rates are 0.15–0.25% lower than equivalent standard fixed rates, provided the property meets BER A1 to B3 requirements (Permanent TSB).
Do mortgage lenders in Ireland have age limits?
Most lenders require the mortgage to be repaid by age 70–75. Some may offer exceptions for borrowers with lower LTVs or strong retirement income (John Charcol).
Will the ECB rate decisions affect PTSB mortgage rates?
Yes, ECB rate changes influence variable rates and the overall direction of fixed rates. PTSB’s fixed rates are based on market expectations of future ECB moves (European Central Bank).
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