Press Releases

05 January 2015

Bank of Ireland announces lower fixed mortgage rates

  • Fixed rates from 3.80% - with only 10 year fixed rate in the market now priced from 4.50%
  • Existing customers can avail of new business fixed rates
  • Reductions in variable rates for new business
  • New  €2.5 billion mortgage fund launched
  • Stamp Duty offer – worth over €2,200 to average home purchaser – extended to end 2015

Monday 5 January 2015: Bank of Ireland has today announced a reduction of fixed and variable mortgage interest rates.  The bank has also announced a new €2.5 billion mortgage fund, and the extension of its highly popular stamp duty offer to the end of 2015.

Today’s announcement includes a cut in the fixed rates for new customers ranging from 3.80% for a 2 year fixed period to a 10 year fixed rate from 4.50% - these fixed rates can also be applied for by existing customers on variable rates or coming to the end of their current fixed rate term.  Bank of Ireland is the only bank currently offering a 10 year fixed rate.

Aine McCleary, Head of Mortgages of Bank of Ireland, commented:

“As a leading mortgage lender, Bank of Ireland wants to provide valuable options to our new mortgage customers, and also to our existing customers as a thank you for banking with us.  We are introducing a highly competitive, wide range of two, three, five, and ten year fixed rates based on the property’s current Loan to Valuation ratio (LTV), available to new and existing home owner customers on receipt of an up to date property valuation, with the two year fixed rate for a home loan with an LTV less than 75% at 3.80%.  We are also reducing our roll to rate for existing customers with LTVs <75%, on receipt of an up to date valuation, and our new business variable rates.”

Thousands of mortgage customers have already benefited from Bank of Ireland’s mortgage offer to pay stamp duty to the value of 1% of the mortgage drawn.  In addition to the range of new lower rates, the bank has extended this stamp duty offer for a further 12 months to 31 December 2015. According to industry statistics (BPFI data Q3 2014), the average mortgage taken out by someone moving house is €224,431, which makes this offer worth over €2,200 to the average customer moving to a new home.

McCleary added “We are now building on the significant momentum underway in meeting the needs of Bank of Ireland's existing and new mortgage customers. Our €2 billion mortgage fund that we launched last year is now fully subscribed and we have launched a further €2.5 billion fund to meet customer demand.  We’re confident that Bank of Ireland’s new mortgage rates, combined with the extension of our Stamp Duty offer to December 2015, provide customers with a mortgage proposition that’s second to none in the Irish market.”

Other features of Bank of Ireland’s mortgage proposition that set it apart from competitors include formal mortgage approval (not just approval in principle) in 24 hours, online application in minutes, 250 branches countrywide staffed by professionally qualified mortgage advisers, mobile mortgage managers who can meet customers anywhere and anytime – including at weekends – and ‘House-Hunter’ mortgage approval that lets customers search for their new home knowing their finance is in place.

Ends

Notes to editors

New Business – Owner Occupier (Effective Immediately)

Pricing Matrix

 

Variable

<60% loan to value (LTV)

3.90%

61% - 80% LTV

4.20%

>80% LTV

4.50%

Fixed

2 year <75% LTV

3.80%

2 year >75% LTV

4.00%

3 year <75% LTV

3.85%

3 year >75% LTV

4.00%

5 year <75% LTV

3.95%

5 year >75% LTV

4.15%

10 year <75% LTV

4.50%

10 year >75% LTV

4.70%

Existing Business – Owner Occupier (Effective 1 February 2015)

Fixed

2 year <75% LTV

3.80%

2 year >75% LTV

4.00%

3 year <75% LTV

3.85%

3 year >75% LTV

4.00%

5 year <75% LTV

3.95%

5 year >75% LTV

4.15%

10 year <75% LTV

4.50%

10 year >75% LTV

4.70%

Roll-to rate at end of fixed period (variable)

LTV <75%*

4.30%

Roll-to rate at end of fixed period (variable)

LTV >75%

4.50%

*On receipt of an up to date valuation.

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