Mortgage war boost for families

THE EBS yesterday became the fourth bank in less than two months to cut its mortgage rates as part of a mortgagerate price war.

Permanent TSB and KBC reduced their rates last month and Ulster Bank cut its rate in late March, in what is being described as a mortgage rate war.

EBS, part of the AIB group, has cut its one, two, three, four and five-year fixed rates for first-time buyers to 3%. It joins Bank of Ireland, KBC and Ulster as market leaders for fixed-rate mortgages. Bank of Ireland also offers a 3% fixed rate for one, two, three and five-year deals, but Ulster and KBC offer rates of 2.85% and 2.90% respectively, across select fixed-rate terms.

A first-time buyer borrowing €270,000 at the old five-year fixed rate of 3.25% will see their payment fall from €1,531 to €1,497 per month, saving €408 a year.

The new EBS cuts follow fixed-rate cuts in October, and its 2% cashback offer stays until the end of the year.

Mark Whelan of price comparison site bonkers.ie said: ‘These rate cuts are good news for borrowers and are a strong indicator that there is a mortgage rate war underway.

‘Four leading banks have cut rates in the past two months, meaning now is a good time for prospective first-time buyers to shop around and consider their options. More than half of all new mortgages drawn down in the first three months of the year came with fixed rates, which illustrates the growing importance Irish borrowers are placing on peace of mind and certainty over their mortgage repayments.’

David Hall of the Irish Mortgage Holders’ Organisation said: ‘This is very welcome and it may spur some further cuts with other banks.’

EBS chief Des Fitzgerald said: ‘Our new reduced fixed rate of 3% for up to five years offers excellent value. These very competitive fixed-rate offerings will appeal to customers seeking value and certainty.’