Mortgages

Ulster Bank cuts fixed rates as mortgage rate war continues

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Mark Whelan

Mark Whelan

Former Head of Communications & Events

Following recent rate cuts from AIB, Haven, EBS and Bank of Ireland; Ulster Bank has joined the mortgage rate war by trimming a number of a its fixed mortgage rates.

This morning, the Central Bank of Ireland revealed that Irish mortgage rates are still well above the EU average.

The average interest rate on new Irish mortgages agreed between July and September stood at 3.31% but the EU equivalent is 1.86%.

Despite the gaping distance between these two figures, mortgage rates are falling in Ireland as banks compete for new customers.

Ulster Bank recently became the fifth bank to cut rates since late September.

Ulster Bank’s rate cuts

Ulster Bank has cut a number of its three-, four-, five- and seven-year fixed mortgage rates.

The cut takes the bank’s three-year fixed rate for Loyalty Plus customers (current account holders) with an LTV of 80% down to 2.85%, which is the best rate currently available for this type of mortgage.

Ulster Bank’s new five-year rate of 2.99% for Loyalty Plus customers with an LTV of 80% is also a market-leader.

The bank also has new, competitive fixed rates for non-current account holders.

For example, Ulster Bank’s seven-year fixed rate of 3.39% for borrowers with an LTV of 80% is the best rate for this exact term.

Here is a list of all of the bank’s new rates.

Term

Rate

LTV

3 Year Fixed Loyalty

2.95%

60%

3 Year Fixed Loyalty

2.99%

80%

3 Year Fixed Loyalty

3.20%

90%

3 Year Fixed Loyalty Plus

2.75%

60%

3 Year Fixed Loyalty Plus

2.85%

80%

3 Year Fixed Loyalty Plus

3.10%

90%

3 Year Fixed

3.15%

60%

3 Year Fixed

3.19%

80%

3 Year Fixed

3.35%

90%

4 Year Fixed

2.60%

80%

5 Year Fixed Loyalty

3.10%

60%

5 Year Fixed Loyalty

3.20%

80%

5 Year Fixed Loyalty

3.50%

90%

5 Year Fixed Loyalty Plus

2.90%

60%

5 Year Fixed Loyalty Plus

2.99%

80%

5 Year Fixed Loyalty Plus

3.40%

90%

7 Year Fixed

3.29%

60%

7 Year Fixed

3.39%

80%

7 Year Fixed

3.49%

90%

Mortgage rate war

Ulster Bank is the fifth bank to cut rates since late September.

AIB and Haven both recently cut their standard variable rates, while EBS and Bank of Ireland each cut a number of fixed rates.

Over half of all new mortgage agreements between July and August were for fixed rates. More and more Irish people are favouring the peace of mind and certainty that comes with knowing exactly what their repayments are likely to be.

Most of Ireland’s banks have opted to cut fixed rates in order to capture customers’ desire for certainty.

The ongoing mortgage rate war is good new for Irish borrowers, but it must be acknowledged that rates in Ireland still have to come down before they can be deemed good value in a European context.

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