IIB Homeloans cuts fixed rates

IIB HOMELOANS yesterday announced a 25-30 basis point reduction across its three- and five-year fixed rate mortgages in a bid to increase its competitiveness in the Irish lending market.

The new rates, which are effective immediately, are being ushered in conjunction with a new “flexi saver” mortgage product from the bank.

“By reducing our fixed rates, we hope to attract new customers looking for competitive rates and who want the peace of mind of knowing what their monthly repayments will be, especially in the current uncertain economic environment,” said IIB group head of marketing John McAlinden.

“Customers will also get the full flexibility of an IIB Homeloans mortgage which allows for customers to split their mortgage amount between fixed and variable over different terms and amounts. For example, customers can split their mortgage 50-50 between fixed and variable rates on different terms to hedge against further rate rises,” he added.

The new flexible mortgage product basically allows customers to overpay their monthly repayments and redraw that amount at a later stage, reducing their interest payments during the overpayment period.

Customers can overpay on a split mortgage and choose whether to apply the overpayment to their variable or fixed rate part of their mortgage.