EBS clients are ready to save on their mortgages after the construction company announced plans to cut its three- and five-year fixed-rate mortgages by 0.15%.
Available from Thursday, the three- and five-year fixed mortgage rates will be slashed to 2.75 percent, representing increased value for first-time buyers and switches looking for fixed rate certainty.
However, the lender, which is owned by AIB, will always be among the most expensive suppliers in the market for these products.
EBS said the new rates will be available to new and existing customers regardless of their loan-to-value (LTV) ratio.
New mortgage customers can receive up to 3% cash back, which means they will receive € 3,000 for every € 100,000 of new mortgage drawn.
Based on a 20-year mortgage of € 282,615 at the new rate of 2.75%, including 3% cash back, customers could save up to € 6,500 in the first five years of their mortgage loan by comparing the same mortgage to that of another – cashback lender.
Likewise, customers currently benefiting from a standard variable rate of 3.7% (with an LTV greater than 80%) would save € 150 on their monthly payments if they switched to a five-year fixed rate of 2.75%. The calculation is based on a mortgage of € 300,000 over 25 years.
The variable rates of BSE are higher than those of its parent group, AIB, where they range from 2.75% to 3.15% depending on the LTV.
EBS Managing Director Paul Butler said, “At EBS, we want to make sure we have a competitive offer for those taking on a mortgage for the first time or transferring their mortgage to us.
“Coupled with our competitive 3% cash back offering, which new customers can take advantage of, this is our lowest three and five year fixed rate on record and represents real value for mortgage customers at the looking for a fixed rate certainty.
The new EBS fixed rate changes go into effect Thursday for all new and existing EBS customers.
The offer of up to 3% cash is available to customers taking out fixed or variable rate mortgages on private homes, including first-time buyers, customers moving into a new home, and customers who want switch their mortgage to EBS.
Customers must draw the mortgage loan by December 31st.