ICS Mortgages Cuts Interest Rates

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ICS Mortgages is cutting interest rates on new fixed and variable rate residential mortgages.

The lender said it would cut rates to 0.5% starting next Monday, August 9th.

Fixed interest rates will start at 1.95% and variable interest rates from 2.45%.

Under these new rates, ICS said that a typical first-time buyer purchasing a 30-year € 250,000 mortgage could save more than € 18,000 over the life of the mortgage, compared to rates offered by one of the largest providers in the country. market.

These estimated savings are based on a € 250,000 loan for 30 years, fixed for three years, with a loan of 90%, which is priced against a similar mortgage offered by one of the largest suppliers on the market with a fixed three-year maturity. rate 2.55%.

“Buying a home is the biggest financial decision most people will make in their lives. However, in recent years, there have been fewer opportunities for Irish home buyers to finance such an important purchase, ”said Ray McMahon, Chief Commercial Officer. ICS Mortgages employee.

Mr McMahon said the favorable conditions in the international financial market now allow them to offer reduced payments to new private clients.

Darag Cassidy of price comparison site bonkers.ie welcomed today’s news from ICS Mortgages.

“Fierce competition is needed now more than ever, as PTSB, AIB and BOI could end up gaining more than 80% of the mortgage market if the loan sales associated with Ulster Bank and the exit of KBC go through,” he said.

Mr Cassidy said ICS Mortgages is currently the second lender in Ireland after Avant Money to offer rates below 2%.

However, he said that we must not lose sight of the fact that Ireland has some of the highest mortgage rates in the eurozone.

“The average rate on a new mortgage here is currently 2.80%, which is more than double the average for the currency block of 1.27%,” he said.

However, Mr Cassidy said the recent rate cuts from non-bank lenders such as Finance Ireland, Avant Money and now ICS mean that rates a little closer to European levels are finally becoming more affordable.

“Avant Money, Finance Ireland and even ICS may not be familiar to many mortgage applicants who might be tempted to turn to more well-known lenders like AIB and BOI as their first port of call.

“However, recent events clearly show that it is the smaller and newer lenders that are now offering some of the best deals,” he said.

Meanwhile, Joey Sheehan, head of credit at MyMortgages.ie, said the mortgage market is becoming more competitive for both new buyers and those looking to upgrade to a mortgage or get a better deal.

“We project a huge increase in the number of existing homeowners looking to move towards reducing monthly floating rate mortgage payments or providing long-term cost certainty with one of the new fixed rate offerings,” he said.

Mr. Sheehan said the borrower could save € 56,000 in interest by cutting the rate from 2.95% to 1.95%.

He said it would be based on a € 300,000 loan at 60% over 30 years.



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