Richie Boucher: Bank of Ireland won’t cut variable mortgage rates

Bank of Ireland chief Richie Boucher says the bank’s policy of promoting fixed-rate mortgages ahead of cutting variable rate home loans will not change for the moment, regardless of competitors’ decisions and political pressure.

Rival lender KBC earlier this week lowered fixed and variable mortgage rates, and Fianna Fáil finance spokesperson Michael McGrath urged other lenders to follow suit.

Mr McGrath had called on all lenders to stop what he described as “the different treatment of existing and new customers by some banks in terms of mortgage rates”.

He said blatant discrimination in the banks’ treatment of existing and new customers “should not be tolerated by the Central Bank”.

Mr Boucher rejected this assertion, saying: “I use every opportunity to advertise the fact that customers can save”.

“What we have is a very clear strategy, we have said that our focus is on fixed-rate offers for our customer. Our fixed rate offers are very competitive, very attractive and they are available for new and existing customers.

“We think this is a good idea because we have learnt lessons. If we can use our product range and our shareholders’ investment to attract people to move to fixed rates, then ideally we would like customers to move from one fixed rate to the next.

“Our desire is to have a habit of customers fixing their mortgages,” he said.

Mr Boucher was in Cork to open a new ‘workbench’ facility for startups at Bank of Ireland’s St Patrick Street branch.

The aim of the workbench is to provide startups with a free space in which to work, hold events and meetings and connect and collaborate with other entrepreneurs.

“One of the things that was coming across in our research was the very high level of startups in Cork,” Mr Boucher said. “It’s a combination of the tech companies that have been here a long time and the colleges as well,” he said.

“If you’re a startup, it can be pretty soul-destroying sitting at your kitchen table; your revenues are variable and you are looking to have as little fixed costs as possible.

"So this is free. Plus, business can be very lonely, especially when starting out. The whole concept is to have people able to start their own businesses, talk to other people and share ideas,” Mr Boucher said.

The Cork facility follows the launch of facilities in Dublin and Galway. The bank brought forward the opening because of its success in the other locations.

“They’ve been very successful, gone much better than our expectations. So we’re trying to roll them out much more quickly,” Mr Boucher said.

Bank of Ireland also announced details of a new dedicated Corporate Banking office in Cork city for existing and potential corporate customers. Bank of Ireland’s Corporate Banking office for Munster will be led by a team with expertise across all sectors as well as a dedicated property finance team.

Mr Boucher said: “Having a Munster office means corporate businesses in the region have fast access to key decision makers, who are experienced bankers and have the ability to service customers’ needs effectively and efficiently.”