Ulster Bank announces mortgage rate cuts

Ulster Bank is introducing a new ten-year fixed mortgage rate, while also reducing its five-year “high value” fixed rate to the lowest single mortgage rate on the market.

The bank said that both new and existing customers can take advantage of their new fixed ten-year rate of 2.95% for people moving from home, mortgage changers and first-time buyers who have a loan value of up to 80%

According to the bank, a customer who currently has a fixed ten-year rate of 3.3% with a mortgage of € 250,000 for 25 years and an LTV of 80% could save more than € 5,000 for ten years by choosing their new offer.

Until recently, very few lenders offered the option of a fixed rate for more than five or seven years.

But Ulster Bank now joins Haven, KBC, Bank of Ireland and AIB to offer mortgage customers the option of a fixed rate for 10 years.

Ulster Bank also said that for customers who get a minimum loan of € 300,000, their five-year fixed rate of “high value” has also been reduced to 2.2%, the lowest single mortgage rate on the market in any category.

The bank also said it was extending its € 1,500 cash towards the offer of legal fees until the end of March 2020 this year.

The new rates are available starting tomorrow.

Daragh Cassidy, of the price comparison and the change of website bonkers.ie, said today the announcement of Ulster Bank is good news for mortgage customers looking for better value and the peace of mind and certainty provided by fixed rates in the longer term.

“The fact that Ulster Bank is weakening the market once again shows that competition in the mortgage market is growing, albeit slowly,” Cassidy added.

He also noted that in recent years fixed rates have become increasingly common in Ireland, with more than 70% of the new mortgages here now fixed.

But this compares with more than 80% in the euro zone.

“And unlike in Europe, where fixed rates of up to 20 years or more are common, few banks in Ireland have offered fixed rates much more than five years until recently,” Cassidy said.

“The question now is whether any lender will start offering fixed rates in the longer term of 12 or even 15 years as in the rest of Europe.”

“While it is unlikely in the very short term, we could see it introduced in the coming years, especially if a new lender enters the market as it is rumored,” he predicted.

But despite recent bank cuts, mortgage rates in Ireland remain the second highest in the euro zone after Greece and are roughly double what they are in many other euro zone countries.

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