Bank of Ireland is to enhance its cashback offer for mortgage customers by giving an additional 1% of the value of loan back in cash, as competition in the sector here intensifies.
Currently the lender offers its current account holders 2% cashback on new mortgages at drawdown (a promotion that was due to end next month), but now it will pay back an additional 1% in cash after five years.
The Cashback PLUS offer is available to Bank of Ireland current account customers who are either first-time buyers, movers or switching mortgage providers up until the end of March 2017.
Earlier this month Ulster Bank reduced its three-year fixed interest rate on mortgages to 2.99% from 3.2% – meaning the lender has the lowest fixed rate in the Irish market.
The rate reduction followed similar moves by competitors in the Irish market amid intense competition in the mortgage market.
Last month Pepper Homeloans lowered its variable rates by up to 0.45% to as low as 3.1%, while in May AIB has announced it was to cut its standard variable rate by 0.25% to 3.4%.
KBC Bank Ireland also lowered its fixed and variable rate products in May, and this year (in addition to Bank of Ireland), ESB, and Permanent TSB introduced 2% cashback offers on mortgages to attract borrowers.