Permanent TSB in chequebook mortgage move - Homeowners have now a new chance to borrow on the equity in their homes. While borrowing on your home is not a new thing, the new product from Permanent TSB is to say at least novel and some would say not designed to be in the best interests of borrowers.
Niall O'Grady, Head of Marketing at Permanent TSB, says the bank's latest offering to borrows - called Oneplan - is a chance for customers to get some flexibility into the way they use their mortgage. He says it is a way to get instant access to unused equity.
Oneplan works by giving customers pre-approval to borrow up to 75% of the value of their homes. It allows customers to use an ordinary checkbook to pay for items such as holidays, consumer goods and home improvements to a minimum of €3,000. Any funds used will only be charged mortgage rates of interest.
O'Grady denies the new product is irresponsible and denies that it encourages people to build up unnecessary debt on their homes. He says that similar products have been launched successfully in Europe and Britain, with no abuse of the product evident.