ULSTER BANK HAS announced its plans to cut its fixed and standard variable rate mortgage.

The move will see rates cut for new and existing customers of the bank.

Cuts to mortgage rates were made last month by the Bank of Ireland and Permanent TSB – although these were only applied to new customers.

The lowest variable rate now being offered by the bank is 3.8% – which will be available to those borrowing up to 60% of a houses value.

The bank has also announced that it will reduce its standard variable rate by 0.20% for those not on fixed mortgages.

Changes

The benefits of these changes will be most felt by those able to produce a larger deposit.

For those seeking a mortgage for 90% of a house’s value will see a reduction of between 0.41% (7-year fix) and 0.6% (3-year fix) depending on the length of the fix.

The majority of new house buyers will be seeking mortgages of 80% loan-to-value ratio due to the new rules from the Central Bank. 

On a 7-year fixed mortgage of 80% buyers will see a reduction of 0.3% from 4.20% to 3.90%.

How the new rates will work out Source: Ulster Bank

Speaking about the changes, Head of Branch Banking at Ulster Bank, Jim Ryan, said, “at Ulster Bank, we want to support customers to make the moves and decisions that are right for them.”

These lowest ever rates, which include a number of market leading rates, are providing us with a fantastic opportunity to help more customers buy their dream home, or save money on their existing deal by switching to us.

Other banks

The Bank of Ireland and Permanent TSB made announcements last month that they were also cutting their rates on fixed rate and variable rate mortgages.

The biggest reductions made by the Bank of Ireland were on five-year fixed rate loans which were 0.8% cheaper.

Read: Applying for a mortgage, but haven’t a clue? We asked the banks where to begin

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