Are we looking at a Mortgage Rates Price War?

#61 … 20248.html

Credit unions to take on banks with mortgage lending offers


At an average rate of 3.5% variable! Some competition…


The lowest standard interest rate in our recorded history.

“Competition” is meaningless when there is only one supplier - the ECB. When it abandons ZIRP, no amount of “competition” will keep our rates down.


While it’d be competitive in the early noughties, this is pretty irrelevant. It’s not really competitive now, which is all that matters.


Considering a switch to BOI for perhaps 2 years fixed at 3%. To avail of their cashback offer.

personalbanking.bankofireland.c … back-plus/

Their APR is quoted on their website as being closer to 4% however so I’d like a little more info on this. Anyone any insight?

I’ve requested a callback from them but not heard from them yet.


is the APRC not just the actual rate over the life of a loan (making an assumption on tenor) fixing for 3 years and then going on to the SVR?

see this example from the website:

The lender is Bank of Ireland Mortgages. Lending criteria and terms and conditions apply. A typical mortgage to buy your home of €100,000 over 20 years with 240 monthly instalments costs €615.79 per month at 4.2% variable (Annual Percentage Rate of Charge (APRC) 4.3%). APRC includes €150 valuation fee and mortgage charge of €175 paid to the Property Registration Authority. The total amount you pay is €148,114.60. We require property and life insurance. You mortgage your home to secure the loan. Maximum loan is generally 3.5 times gross annual income and 80% of the property value (90% of the property value for first time buyers). A 1% interest rate rise would increase monthly repayments by €54.02 per month. The cost of your monthly repayments may increase – if you do not keep up your repayments you may lose your home.
At the end of a fixed rate period, existing customers on a fixed rate can choose from our range of fixed rate options or roll to the prevailing Loan to Value Variable rate. Mortgage applicants must be over 18.


Thanks. That’s it exactly. It’s the roll off rate that’s the sting in the tail over the term of the mortgage. I was thinking about valuation costs and fees and was having a blindspot for the roll off rate. I’ve been too used to dealing with Variable rates where the rate and APR are usually within 0.1% of each other.

Hmm, I might fix for 5 years now at 3%. With an additional 1% available at 5 years that could cover the legal costs of moving again if the prevailing conditions dictate.



fwiw i bought a new house Dec 16, original mortgage with EBS for 2% CB. Switched in September of this year to BOI and got their 2% CB, fixed at 3%. Assuming a low breakage cost i will be trying to get onto UBs 2.5% 5 year rate by the end of Q1, i might stick for a while then :smiley:


Fair play. Hope that works out.

Had to check that UB 2.5% rate. Nope, not applicable to me :smiley:


in most cases thats a good thing :cry:


Another annoyance with KBC mortgages - if you are on a variable rate and want to fix, you have to re-apply and incur the expense of getting the property evaluated again (evaluations are good for 4 months only).

Not sure if other banks make you do this or allow you to fix, without an evaluation, using your previous LTV band.


Anyone know if KBC 10 year fixed rate is still available? Irish gov 10 y yields are up 50 bps (0.5%) since Dec … bond-yield



That 10 yr fixed with the current account discount (2.95%) could look like unbelievable value over next decade.
I’d imagine it’ll be great value in 2 or 3 years when interest rates may be, IMO, a bit higher than now.
Maybe poor value whenever the global economy collapses into an unservicable debt-trench with negative rates… but to be fair we are all going to have big problems then I fear. :cry:
As BailOut#2 will likely be, IMO, with citizens actual money/savings, rather than harvesting future money in taxes. I hope that I’m wrong! I really do.


Fixed rates are effectively unilaterally binding on the bank since the central bank rules introduced in 2016. Fill yer boots!

If rates go down, you pay the small breakage fee. If rates go up yer laughing.


quite correct!


Ulster Bank kicks off new mortgage war with string of cuts to fixed rates … 94516.html


2nd time in a row they’ve cut fixed rates but left the variable alone


The Indo has a story on KBC cutting rates from April 3rd 2018. … 10947.html

I can’t find the new rates tabled anywhere yet though.


At this point is there a anything stopping someone hopping through each of the cashback offers going? I see some people in this thread exited early and none of the Ts & Cs reference a clawback anymore.