1. What Started the Mortgage Price War?
In January, Ulster bank introduced a 10-year fixed rate and reduced their “High Value” 5-year fixed rate. These new rates are highly competitive and are currently the lowest 5- and 10-year fixed mortgage interest rates available on the market. This has prompted others to follow suit trying to stay competitive, sparking a mortgage price war among lenders.
KBC and Haven (AIB) were the first to follow, dropping their 3 & 5-year rates back in late February. The pressure was on after market leader AIB dropped their rates with rivals Permanent TSB following with a 0.2% reduction across their 7-year fixed rates.
AIB’s main rival, Bank of Ireland, has yet to make any changes to their mortgage interest rates. With all major lenders in the market already having dropped their rates, it is likely Bank of Ireland will follow suit in the coming weeks or months.
2. Where Are Mortgage Rates Heading?
Ulster Banks “High Value” 5-year fixed rate is highly competitive being up to 0.6% lower than the 5-year fixed rates offered by both Bank of Ireland and Permanent TSB. Any decreases by Bank of Ireland would have to be substantial to compete with the new highly competitive rates available. The potential decrease could see interest rates dropping even closer to 2% or even below that, if lenders decide to decrease rates further.
As a mortgage broker, Mortgage123 keeps a close eye on changing rates and are informed in advance when rates may change. This means that we can help you switch lenders before you draw down on your mortgage if a better interest rate is released. Here at Mortgage123, we ensure you always get the best deal on your mortgage.
3. What New Mortgage Rates Are Available?
Rates accurate at 11 March 2020.
Ulster Bank
- High Value 5-year fixed rate (min €300k) – 2.2% (LTV <80%)
- 10-year fixed rate – 2.95% (LTV <80%)
- 10-year fixed rate – 3.15% (LTV 80-90%)
Haven (AIB Broker Arm)
- 3-year fixed rate – 2.55%
- 5-year fixed rate – 2.55%
KBC (Rates include a 0.2% KBC current account discount)
- 3-year fixed rate – 2.3% (LTV 60-80%)
- 3-year fixed rate – 2.35% (LTV 80-90%)
- 5-year fixed rate – 2.45% (LTV 60-80%)
- 5-year fixed rate – 2.5% (LTV 80-90%)
Permanent TSB
- 7-year fixed rate – 2.9% (LTV <60%)
- 7-year fixed rate – 3.0% (LTV 60-80%)
- 7-year fixed rate – 3.15% (LTV 80-90%)