Bank of Ireland has announced that it will pay owner occupiers 1% of their mortgage amount when they switch their mortgage to Bank of Ireland. The 1% payment, which is not capped, is designed to cover legal and property valuation fees associated with switching – for example, a homeowner switching a €200,000 mortgage to Bank of Ireland will receive a payment of €2,000. Switchers to Bank of Ireland can borrow up to 90% of the value of their home.
Commenting on the announcement Aine McCleary, Head of Mortgages at Bank of Ireland, said: “We are intent on building on the significant momentum underway in meeting the needs of new and existing mortgage customers. Our €2 billion mortgage fund that we launched last year is now fully subscribed and we have launched a further €2.5 billion fund to meet customer demand. We’re confident that Bank of Ireland’s new mortgage rates, combined with the extension of our Stamp Duty offer, and the new and uncapped 1% offer for switchers to December 2015, all provide customers with a mortgage proposition that’s second to none in the Irish market.”
The announcement comes just weeks after the Bank announced a reduction of fixed and variable mortgage interest rates, a new €2.5 billion mortgage fund, and the extension of its highly popular stamp duty offer to the end of 2015 which has already benefited thousands of customers. According to industry statistics (BPFI data Q3 2014), the average mortgage taken out by someone moving house is €224,431, which makes the bank’s stamp duty offer worth over €2,200 to the average customer moving to a new home.
Bank of Ireland’s new range of very competitive rates ranges from 3.80% for a two-year fixed period, to the Irish market’s only 10-year fixed rate from 4.50%. These rates are available to switchers, people moving home, and first time buyers. In addition, the Bank also announced that existing mortgage customers on a variable rate or coming to the end of a fixed rate term can now avail of the new business fixed rates.