Ulster Bank’s reduction in fixed rates is a sign of “a mortgage war that shows no sign of abating”, but Irish homeowners still face hefty payments in comparison to their European counterparts.
That is according to consumer website Bonkers.ie, which said the lender’s reducing of its seven-year fixed rates, as well as a new two-year fixed rate of 2.3%, meant it was now the market leader.
Ulster Bank also reduced the rate on its four-year fixed rate from 2.85% to 2.6% for first-time buyers.
He said many of the recent rate reductions by banks have been targeted at new customers, with existing customers seeing little in the form of price movement. He urged customers to “shop around” as “possible savings over the lifetime of a mortgage can be huge.”
Fianna Fáil finance spokesman Michael McGrath said Ulster Bank’s reduction was “a major breakthrough for customers” and a “long-awaited shake-up” of the mortgage market.
He said it proved Irish banks “have been ripping off mortgage holders and can afford to cut rates closer to European norms and still make healthy profits”.