Skip to main content

Permanent TSB’s 10pc bonus for Mortgage Holders


TSB’s Desperate bid to ward off ECB’s rate?

Mortgage holders of Permanent TSB who have made lump-sum payments of over €5,000 are to receive bonus payments of 10 percent from the bank. I believe the reasons are simple: Permanent TSB wants its tracker mortgage holders to clear their home loans faster. Another contrbuting factor that TSB would make assure the bonus is this: get loss-making mortgage trackers off and spare the bank the pressure of raising €4 billion for “protection” against any new shake-ups.

This April, the European Central Bank  raised its rate to 1.25%. It seems Irish Life & Permanent needs to raise at least €4 billion in capital as ‘proetction’ against financial shocks.

The latest surprising turn of events is not so much for the bonus as it is for its timing and the size of the carrot. The bonus is offered to all tracker mortgages, residential, investment and commercial with the Permanent TSB. The mortgage will be available until June 17, news agencies are reporting.

There are reports that the period of the incentive would be extended if the scheme is successful.
Permanent TSB is the bank branch of Irish financial institutions Irish Life & Permanent. Irish Life & Permanent is reportedly losing money on its tracker mortgages and it is said that the bonus is an incetive of the TSB to encourage its about 70,000 tracker customers to make overpayments. If the ‘bonus’ atatins its objective, the incetive would cut the bank’s losses on funding the loans, said to be in the region of €400m a year.

A mortgage tracker account holder paying a lump sum of €5000 or more will have the bank adding a 10% bonus. The reason the incentive is even more surprising now is that the bonus was expected to be around 5% not a significant 10%.  The 10 percent is easily two times higher than the premium savings index available in the market currently.
Labels:

Popular posts from this blog

Apple unveils App Accelerator for developers

Apple on Friday announced the opening of its App Accelerator in Bengaluru that will provide specialized support for developers to build tools for the iOS platform. Each week, Apple's team will guide developers to design best practices and refine their skills to create iOS apps. "We are impressed by the great entrepreneurial spirit in India and are excited to provide a platform for these developers to share their innovations with customers around the world," said Philip Schiller, Senior Vice President of Worldwide Marketing at Apple, in a statement. The announcement came at a time when Apple app developers earned over $20 billion in 2016 -- up over 40 per cent from 2015 and several of those talented minds were from India. According to an Apple India spokesperson, app developers from India are now creating amazing apps for its platform. "There are several app developers from India who are now part of the growing innovative community globally," the spokes...
Read More

Apple to reportedly stop supporting 32-bit apps with iOS 11

In a bid to remove problem apps and to focus on quality, Apple will stop supporting 32-bit apps with the release of iOS 11 later this year, meaning that many legacy applications will no longer function at all. "Starting with iOS 10.3, Apple has started alerting users when they open a 32-bit app on iOS. The pop up notification reads that the app must be updated by the developer or else it may not work with future versions of iOS," tech website 9to5mac.com reported on Monday. The tech giant started supporting 64-bit applications with the launch of the iPhone 5s in September 2013. The company also asked developers to submit new apps with 64-bit support since February 2015 and app updates starting June 2015. Last month, Apple has officially released iOS 10.3 update that has major updates regarding its newly launched AirPods, WiFi calling and SiriKit. Other minor updates include new security features and a new cloud section under the Apple ID Settings menu. The new section shows ...
Read More

How mobile phones are changing human communication

Mobile technology has undergone a rapid and transformative evolution since its inception. From the cumbersome devices of the past to the sleek, powerful smartphones of today, mobile phones have reshaped the way we communicate, work, and interact with the world around us. The story of the journey of mobile phones is anything but tedious — an understatement unto itself.   A casual examination of the key moments in their history, the influential companies that shaped their trajectory, their impact on human communication, and what the future holds for these indispensable gadgets, will offer a clearer picture of the value that mobile technology has brought to people, commerce and technology the way we used to.   The roots of mobile phones can be traced back to the mid-20th century when the first rudimentary mobile communication devices were developed. The Motorola DynaTAC, introduced in 1983, marked a significant milestone as the first commercially available mobile phone. ...
Read More