EBS announces cuts to fixed rates

Discussion in 'The Fair Mortgage Rates Campaign' started by RedOnion, 16 May 2018.

  1. RedOnion

    RedOnion Frequent Poster

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    Last edited by a moderator: 21 May 2018
  2. RedOnion

    RedOnion Frequent Poster

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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.
     
    RMGC11 likes this.
  3. Showmethemoney

    Showmethemoney Registered User

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    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.
     
  4. Páid

    Páid Frequent Poster

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    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.
     
  5. Joe90

    Joe90 Frequent Poster

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    Are EBS rates available through mortgage brokers?
     
  6. Showmethemoney

    Showmethemoney Registered User

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    I have just received an email confirming that there is no breakage fee but that this offer only last 5 days.
     
  7. RedOnion

    RedOnion Frequent Poster

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    Their broker offering is via Haven which AIB operate as a separate brand. No announcement of rate cuts there yet, but they generally follow.
     
  8. Clonback

    Clonback Frequent Poster

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    Great news from EBS this morning.

    This is exactly what is needed to put BOI fixed rates under real pressure.
     
  9. Fire away

    Fire away Registered User

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    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.
     
  10. Páid

    Páid Frequent Poster

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    Is it a good idea to fix for 5 years given that the breakage fee is €0?
     
  11. Showmethemoney

    Showmethemoney Registered User

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    My understanding from the email I got is that the zero breakage fee only applies for 5 days. Maybe I am wrong.
     
  12. skrooge

    skrooge Frequent Poster

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    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.
     
  13. Páid

    Páid Frequent Poster

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    I'm sure that the breakage fee can change (see here).

    Last time I fixed for a year but this time I might fix for longer.
     
  14. cliqueentour

    cliqueentour Frequent Poster

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    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?
     
  15. RedOnion

    RedOnion Frequent Poster

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    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.
     
  16. Coldwarrior

    Coldwarrior Frequent Poster

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    Can confirm this, I switched to PTSB a year ago after being with EBS for 12 months.
     
    RedOnion likes this.
  17. deltrotter

    deltrotter Frequent Poster

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    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
     
  18. Thomas

    Thomas Frequent Poster

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    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)
     
    Coldwarrior likes this.
  19. deltrotter

    deltrotter Frequent Poster

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    Can't switch unfortunately. Still in negative equity!
     
  20. Thomas

    Thomas Frequent Poster

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    Sorry about that - hopefully you will be out soon!