EBS announces cuts to fixed rates

RedOnion

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After much speculation, this is finally happening!
All fixed rates for terms of 1 to 5 years being cut to 3% from next Wednesday.

Cashback confirmed for remainder of year.

https://m.independent.ie/business/p...ates-to-heap-pressure-on-rivals-36911452.html


https://www.ebs.ie/mortgages/mortgage-interest-rates

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My opinion on this is that it's a significant move.

AIB group and BOI command just over 60% of new business market between them. One gets the impression they've danced around direct competition for the last few years - AIB competed on variable rates, while BoI led with fixed rate cuts. All you have to do is look at the best buys tables that @Brendan Burgess and others have tried to maintain to see how difficult it is to compare rates.
To date, it's prevented the banks entering into a 'race to the bottom' competitive pricing policy.

Now EBS have directly matched BoI fixed rates for all terms and LTVs of 1 to 5 years.

The only thing setting them apart is BoI's additional cashback at the end of 5 years. But BoI are preparing to re-enter the broker market, and might have to re-evaluate the cashback structure as they'll also be paying broker commissions. This is really putting it up to BoI to clarify if they are extending cashback beyond June, and we might see further rare reductions.

The amount of rate reductions might not be material, but this might be the first sign of real competition as the banks fight for market share.
 
Great news. I am currently fixed at 3.15% until the end of the year. I must enquire about breakage fees and have a think about how long it would sense to fix for.
 
If you are registered with EBS online there is a Fixed Rate Breakage fee field in your mortgage account. I'm fixed until October and it tells me that the breakage fee is €0.
 
Great news from EBS this morning.

This is exactly what is needed to put BOI fixed rates under real pressure.
 
Good news I'm just after switching from KBC to BOI to avail if the 2% cashback. I wonder can I switch again to EBS or have they anything in the small print. I know TSB have 2 year period before u can switch.
 
Great news. I am currently fixed at 3.15% until the end of the year. I must enquire about breakage fees and have a think about how long it would sense to fix for.
Is it a good idea to fix for 5 years given that the breakage fee is €0?
 
Is it a good idea to fix for 5 years given that the breakage fee is €0?

Before looking at EBS I would check out the opposition. Ulster bank offer a similar product at 2.8% (it's a little bit longer than 5 years). They will also make a contribution towards your legal fees for switching. If you are planning on significantly overpaying your mortgage during the fixed-rate period Ulster also allow you to overpay by 10% of the outstanding balance per year. Assuming you're not eligible for the EBS cashback offer I would argue that all things considered Ulster is the better product.
 
If you take out a mortgage with PTSB must you stay with them for 2 years before switching to another lender? As per what "Fire Away" said above in post number 9?
 
If you take out a mortgage with PTSB must you stay with them for 2 years before switching to another lender? As per what "Fire Away" said above in post number 9?
No. PTSB will insist that you have been with previous lender for a certain time before they will take you on.
Some posters have been told by PTSB that is 2 years.
Their published criteria is 12 months, or 24 if you are seeking an equity release at the same time.
 
No. PTSB will insist that you have been with previous lender for a certain time before they will take you on.
Some posters have been told by PTSB that is 2 years.
Their published criteria is 12 months, or 24 if you are seeking an equity release at the same time.

Can confirm this, I switched to PTSB a year ago after being with EBS for 12 months.
 
Thanks again guys for the heads up on this. Somehow I managed to miss this story in the media last week!

So the question is how long should people fix for? I'm coming from 3.15% and no breakage fee - offer is valid for 5 working days.

I can't imagine rates coming any lower than 3%? I'm almost tempted to fix for 2 years - I normally only fix for 1 year at a time.

Thanks
 
Don't know if you can switch but Ulster are doing 4-5 year fixed for 2.6% and if you are with BOI and challenge them they usually give reduction on their quoted fixed rates (i got 2.8% for 5 years)
 
Don't know if you can switch but Ulster are doing 4-5 year fixed for 2.6% and if you are with BOI and challenge them they usually give reduction on their quoted fixed rates (i got 2.8% for 5 years)

Can't switch unfortunately. Still in negative equity!
 
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