The Bank of Ireland has announced that it is cutting some of its mortgage rates. The move comes after ICS Mortgages increased some of its key fixed rates earlier this past week, citing higher costs of wholesale funding – prompting fears that other lenders were to follow with rate rises.
It is anticipated that The European Central Bank will raise its key lending rate by the end of 2022, while the Central Bank here found that mortgage rates increased by the most in five years in January.
The Bank of Ireland, steered by Francesca McDonagh, is lowering the rate on its green mortgage to 1.9%. It will make it easier to qualify for this product. The bank is also decreasing the rate on what it calls it high-value four-year mortgage by 10% points to 2.20% – facilitating those borrowing €250,000 or more to qualify for this. Before, consumers had to borrow €300,000 or more to qualify for the loan.
The institution is also reducing the green mortgage rate by 10 percentage points to 1.9% for new customers borrowing €250,000 or more. This is applicable to those who are buying or building a home with a Building Energy Rating (BER) of B3 to A1.
The bank is also cutting its four-year high-value mortgage fixed rate by 10 percentage points to 2.20%. The eligibility threshold for all green and non-green high-value mortgages will move from €300,000 to €250,000.
The amendments will be available to new customers who meet the eligibility criteria from 22 March, 2022.
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