EBS to cut its three and five-year fixed rate mortgages

Rates will be available to new and existing customers regardless of loan to value ratio

A pedestrian passes the EBS Building Society company headquarters in Dublin.

A pedestrian passes the EBS Building Society company headquarters in Dublin.

 

EBS customers are in line for savings on their mortgages after the building society announced plans to cut its three and five-year fixed rate mortgages by 0.15 per cent.

Available from Thursday, the three and five-year fixed mortgages rates will reduce to 2.75 per cent, representing increased value for first time buyers and switchers looking for fixed rate certainty.

However, the lender, which is owned by AIB, will still be among the most expensive providers in the market for such 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 avail of up to 3 per cent back in cash, meaning they will receive €3,000 back for every €100,000 in new mortgage borrowing drawn down.

Based on a 20-year mortgage of €282,615 at the new rate of 2.75 per cent, including 3 per cent cashback, customers could save up to €6,500 over the first five years of their mortgage when comparing the same mortgage to one from a non-cashback lender.

Similarly, customers currently on a standard variable rate of 3.7 per cent (with an LTV of greater than 80 per cent) would save €150 on their monthly repayments if they switched to a five-year fixed rate of 2.75 per cent. The calculation is based on a €300,000 mortgage over 25 years.

EBS’ variable rates are higher than its parent group, AIB, where it ranges from 2.75 per cent up to 3.15 per cent depending on the LTV.

EBS managing director Paul Butler said: “At EBS we want to ensure we have a competitive offering for those either taking out a mortgage for the first time or switching their mortgage to us.

“Coupled with our competitive 3 per cent cashback offering, which new customers can avail of, this is our lowest three and five year fixed rate ever and represents real value for mortgage customers looking for fixed rate certainty.

The new EBS fixed rate changes come into effect on Thursday for all new and existing EBS customers.

The offer of up to 3 per cent back in cash is available to customers taking out fixed or variable rate mortgages on private wwelling houses, including first time buyers, customers moving to a new home, and customers who wish to switch their mortgage to EBS.

Customers must draw down the mortgage loan before December 31st.