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Dublin: 12 °C Sunday 12 July, 2020

Did Noonan's warning work? More banks cut mortgage rates

Good news for some mortgage holders – depending on which bank they’re with.

Image: Shutterstock

ULSTER BANK WILL be reducing its fixed mortgage rates by up to 0.35% later this month.

The rates, some of which are a full percentage point lower than the bank’s current variable rate of 4.3%, will be made available to existing customers from 17 July onwards.

The lowest fixed rate will now be 3.3% for three years, and applies to customers who owe 60% or less on their mortgage than their property is worth.

For customers who owe 80% or less, they can avail of a rate of 3.55% for three years.

The bank said customers currently on a variable rate of 4.3% can save €1,878 in a year on a €300,000 mortgage by availing of the new three-year fixed rate of 3.3%.

An existing mortgage customer with a €300,000 mortgage that is worth 60% of the house’s value could save €951 by switching to a rate of 3.8%.

Noonan’s warning

Finance Minister Michael Noonan had set a deadline of 1 July for banks to respond to his calls for cuts to rates – or else face levies.

Ulster Bank reduced its variable rate in February.

Today’s news comes after Permanent TSB announced a cut to its variable interest rates earlier this week. The bank said more than 70,000 existing customers on mortgage rates of 4.5% will have the option to move to new rates starting from 3.7% from August.

A number of other banks have reduced fixed and variable mortgage rates in recent months. AIB announced a cut in variable rates, while Bank of Ireland reduced its fixed rates and KBC Bank launched lower fixed rates.

Read: Michael Noonan warns banks: Cut your interest rates or else…

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Órla Ryan

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