Permanent TSB making €350 million available to first time buyers

PTSB aim to loan out €350 million worth of first time buyer mortgages in 2013Permanent TSB

Mortgage lender Permanent TSB is putting aside up to €350 million in a bid to increase lending to first time buyers. Funds for lending are coming primarily from its customer’s deposit accounts which have a combined value of €12 billion. This money could secure 2,000 new mortgages for a property market starting to show some encouraging signs of price stabilisation.

This commitment to lend is a far cry from last year when it lent next to no first time mortgages. It also had the issue of getting on top of its troubled residential and buy-to-let mortgage books two years ago. But it now seems that PTSB has enough confidence in the property market to go back to mortgage lending again. First time buyers will have to give a 10% deposit, a bit higher than the 8% demanded by Allied Irish Bank.

However, any first time buyer who lends from PTSB will benefit from one of the lowest variable rates available on the market – 3.99%. But, this introductory rate is only available for the first year of the loan term and changes to 4.33%, a rate which compares well to other mortgage lenders. With KBC and EBS Building Society also re-entering the market, 2013 could very well be an eventful year for the first time buyer mortgages.