EBS has announced that it’s cutting its three and five-year fixed rates by 0.15% to 2.75%. The welcome change will add some much-needed competition to the mortgage market.
There isn’t always much good news to shout about on the mortgage front.
In recent months both Ulster Bank and KBC have announced their plans to exit the Irish market in a move which will drastically reduce choice and competition here, while latest figures from the Central Bank show Irish mortgage rates are the third highest in the Eurozone and over double the EU average.
However today there’s some good news to shout about for once as EBS has announced that it’s cutting its mortgage rates for the first time since November 2019.
What are EBS’s new mortgage rates?
EBS is cutting its three and five-year fixed-rate mortgages by 0.15% to 2.75% from 22nd July.
The new rates will be available to both new AND existing customers and to first-time buyers, movers and switchers.
Also, whereas most lenders reserve their best rates for those with larger deposits or higher amounts of equity, EBS applies the same rate to everyone regardless of their loan-to-value (LTV) ratio.
Customers who take out a new mortgage with EBS or switch to the lender can also get up to 3% cashback - 2% is paid within 60 days of drawing down your mortgage while the other 1% is paid after five years, subject to meeting certain terms and conditions.
So if you take out a €300,000 mortgage, you could get up to €9,000 back in cash.
|
Type |
New Rate |
Change |
|
1-year fixed rate |
2.90% |
N/A |
|
2-year fixed rate |
2.90% |
N/A |
|
3-year fixed rate |
2.75% 2.90% |
-0.15% |
|
4-year fixed rate |
2.90% |
N/A |
|
5-year fixed rate |
2.75% 2.90% |
-0.15% |
|
Variable rate |
3.70% |
N/A |
Speaking about the news, Paul Butler, Managing Director at EBS said:
Buying a home is one of the biggest decisions somebody will make, which is why at EBS we want to ensure we have a competitive offering for those either taking out a mortgage for the first time or switching their mortgage to us. We’re delighted to announce our reduced fixed rate for new and existing customers, representing real savings for customers every month. Coupled with our competitive 3% cashback offering, which new customers can avail of, this is our lowest three and five year fixed rate ever and represents real value for mortgage customers looking for fixed rate certainty.
“Our team of dedicated Mortgage Masters across the country are on hand, ready to work with home buyers who are looking to realise their dream of home ownership and avail of the excellent value and expertise EBS offers.
What are the savings?
A reduction of 0.15% might not seem like a lot but it can all add up.
According to the Banking and Payments Federation of Ireland (BPFI), the average first-time buyer mortgage here is now around €250,000.
So someone borrowing this amount over 30 years who chooses EBS’s new five-year fixed rate of 2.75% would save just under €20 a month or €1,200 over the five years compared to the previous rate.
However, despite the reduction, EBS's rates are still among the highest in the market, which is why it's important to shop around to find the best deal for your particular circumstances. Which brings us on to our most important point...
Always compare
Taking out a mortgage is likely to be one of the biggest financial decisions you’ll ever make so it’s important you do your research and compare the rates and offers from all lenders.
The good news is that you can do that quickly and easily on bonkers.ie.
Whether you're a first-time buyer, mover or switcher, our free mortgage calculator lets you compare mortgage rates and cashback offers from all 10 lenders in Ireland at present and will quickly show you what your monthly repayments or savings would be.
And when the time comes to apply for your mortgage, you can submit an online enquiry through our new mortgage broker service and one of our experienced financial advisors will call you back to get your application started.
Best of all, our mortgage broker service is entirely free! It’s fully digital from start to finish, meaning everything can be carried out online from the comfort of your home and it's completely paper-free too!
To find out more about our mortgage broker service, see here and to learn about how your mortgage application will be assessed, take a look at this guide.
Looking for some guidance?
If you’re considering applying for a mortgage and are looking for more information, you may find the following articles helpful:
- Here are 6 tips that will help make it easier for you to get your mortgage deposit together.
- We’ve outlined 9 common mistakes people make when applying for a mortgage that everyone should be aware of.
- More people are opting for fixed rates over variable rates, however it’s important to know the pros and cons of both so that you can make an informed decision.
Let's hear from you!
What do you think of today’s news from EBS? We’d love to know your thoughts in the comments below!
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