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Mortgages

Bank of Ireland extends its 3% mortgage cashback offer and announces changes to its fixed rates

Daragh Cassidy

Daragh Cassidy

Head Writer

Bank of Ireland has announced that it’s extending its 3% mortgage cashback offer until 31st December 2019. It’s also announced changes to its range of fixed-rate mortgages, with some decreasing but others increasing.

The good news

The bank has extended its 3% cashback offer until the end of the year for first-time buyers, movers and switchers.

With this offer, Bank of Ireland current account customers get 2% cashback after drawing down their mortgage and a further 1% in five years' time.

The 2% deal is still available to those who don’t have a current account with the bank.

The average first-time buyer mortgage in Ireland is now around €225,000. So with Bank of Ireland’s 3% cashback offer, a first-time buyer drawing down a loan of this size could get €6,750 back in cash. Not bad!

Bank of Ireland has also announced a series of changes to its fixed-rate mortgages for new and existing customers starting from today.  

The bank has reduced its one-year and two-year fixed rates by 0.10% from 3% to 2.90%.

Using the example above, a first-time will save just over €12 a month if they choose the new one or two-year options.

The bad news

However Bank of Irleand is increasing its five-year rate from 3.00 to 3.20% while its 10-year fixed rate has increased by 0.20% also. The new 10-year rate will be 3.50% for those with at least a 20% deposit and 3.70% for those with less than 20%.  

This means those who have a 10% deposit and choose the 10-year fixed rate will be €25.29 worse off a month or almost €3,035 over the course of the 10 years.

 

Bank of Ireland Fixed Rates*

New Rate

Old Rate

1 year

2.90%

3.00%

2 year

2.90%

3.00%

3 year

3.00% - no change

3.00%

5 year

3.20%

3.00%

10 year LTV ≤80%

3.50%

3.30%

10 year LTV ≥80%

3.70%

3.50%

*These rates are available to new mortgage customers, existing mortgage customers on a variable rate and to customers coming to the end of a fixed-rate period.

Longer-term fixed rates still poor value

Although fixed rates have become more popular in Ireland in recent times, the choice for consumers to fix over longer periods is still hugely limited here.

In many European countries you can get a competitive fixed rate for up to 20 years or more. In Ireland, the maximum term available is 10 years and even this is only available from two lenders, one of whom has now increased its rates. 

A 20-year fixed rate in France would be around 2%. With Bank of Ireland the rate is now almost 4% over 10 years, which outlines how expensive longer-term fixed rates are in Ireland compared to most Eurozone countries.  

So what do you think?

Are you currently looking for a home? Is today's news from Bank of Ireland good for you? Get in touch as we love hearing from you.

And remember you can easily compare interest rates and cashback incentives across all lenders in just seconds on bonkers.ie with our easy-to-use mortgage calculator.

  

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