Existing customers of EBS are set to be disappointed as the lender confirmed it is not cutting its variable rate.
However, the former building society, which is part of AIB, is slashing its fixed rates for new and existing customers.
These lower fixed rates are set to challenge Bank of Ireland, Ulster Bank, Permanent TSB and KBC Bank. EBS is also extending its popular 2pc cash-back offer for first-time buyers and switchers.
BOI made their last move back in June so it will be interesting to see how long they take to re-act to the latest EBS move.Expect a big response from BoI to protect market share.
What do you think is inherently wrong about lenders choosing to compete on this basis?Theres something inherently wrong about this.
I see. In that case why don't borrowers fix?That all rates are decreasing but Variables are being kept high to fund the banks
Also I'll ask this here, is there a minimum period we have to wait before transferring the mortgage to another provider as it might actually be cheaper to go to say KBC or BoI once we change over to EBS if we din't fix with them?
UB I July told their brokers that they are now considering switchers after just 6 months.
We'll, there's such a gap between their variable and fixed rates now, that it should be worth fixing even if you intend to be gone in 6 months. There might be a break fee, but interbank interest rates would have to fall significantly to out weigh the interest rate savings.Interesting, I'm a a wet week into an EBS mortgage (variable). Motivation was the 2% cashback. The intention is to cut and run as soon as I can (or more to the point as soon as someone better will have me).
I was working on the assumption that no one else would touch me for a year so after the reduciton in fixed rates was considering fixing that part of the mortgage I'm unlikely to pay off in year one (i.e., most of it!) for the year. Seemed to be a no brainer if I cant move for 12 months then make it as cheap as I can with EBS.
However, if banks are moving towards quicker assessments of switching then my options might not be as clear cut as I thought.... I had every intention of checking this with KBC yesterday morning but unfortunately their hub was closed at the time.
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