Some Irish mortgage lenders have been accused of punishing their existing customers by offering higher interest rates on mortages than for new customers.

The Irish Independent has reported that Permanent TSB, Bank of Ireland and KBC Homeloans have been charging higher fixed-rate mortgages to existing customers.

The paper cited Permanent TSB who has recently increased its standard variable rate by 0.5% – despite no increase in ECB rate – as charging a new customer the option of fixed for five years at 3.7pc, but an existing customer who wants to lock in to the five-year fixed rate will be charged 5.75pc.

That is a difference of €293 a month in the repayments on a €250,000 mortgage over 30 years between the two rates.

The full article can be accessed here.