Just like the weather the competition in the mortgage market continues to heat up with news that Ulster Bank is reducing some of its fixed rates while introducing a new two-year fixed rate.
What’s new with Ulster Bank?
Ulster Bank has announced a new two-year fixed rate of 2.3%. As more and more customers opt for the certainty of a fixed rate it’s unsurprising that banks are reacting by offering customers more choice in this area. The new rate is available across all LTVs (loan-to-value) and it's now the lowest rate on the market.
The bank has also announced an extension of its €1,500 contribution towards home buyers’ legal fees until 31 December 2018.
Which mortgage rates are being cut?
The bank has reduced its seven-year fixed rates by up to 0.4%.
Along with AIB, Ulster Bank is the only bank to offer a fixed rate over this time period and it remains the market leader here.
|
LTV: seven-year fixed rate |
New rate |
Old rate |
|
Up to 60% |
2.99% |
3.29% |
|
Up to 80% |
2.99% |
3.39% |
|
Up to 90% |
3.29% |
3.49% |
The bank has also reduced the rate on its four-year fixed rate from 2.85% to 2.6% for customers with an LTV of up to 90%, the rate customers with an LTV of up to 80% currently get offered.
|
LTV: four-year fixed rate |
New rate |
Old rate |
|
Up to 60% |
2.6% |
2.6% |
|
Up to 80% |
2.6% |
2.6% |
|
Up to 90% |
2.6% |
2.85% |
Mortgage rate war?
This is the second time this year that Ulster Bank has announced changes to its rates and follows hot on the heels of recent rate reductions by EBS and KBC.
The ongoing reduction in new mortgage rates is certainly good news for home buyers, but we need to remember that rates in Ireland still remain elevated compared to rates in most other Eurozone countries. Also, many of the recent rate reductions by banks have been targeted at new customers, with existing customers seeing less in the form of price movement, although Ulster Bank's new rates are available to both new and existing customers.
Should I switch mortgage lender?
With banks fighting for new business, customers should shop around and look into switching to ensure they’re getting the best deal, as the possible savings over the lifetime of a mortgage can be huge.
In fact, the Central Bank has just announced that it is introducing changes to its Consumer Protection Code which should help make it easier for customers to know when to switch in order to get a better rate and therefore make significant savings over the remainder of their loan.
Check out the video below to get an idea of just how much you could save by switching mortgage lenders to get on the best available rate!
