Ulster Bank has announced a new suite of three-year, five-year and seven-year fixed interest rate mortgage options for current customers.
The new rates, which will depend on the size of the mortgage relative to the value of the home, will be available from July 17.
The three-year option starts at 3.3% for customers with a 60% loan-to-value ratio, but the current standard variable rate of 4.3% remains unchanged.
The fixed rate reduction represents a cut of up to 0.35 percentage points. The same rates are available to both new and existing customers.
Ulster Bank’s move has been welcomed by the Tánaiste Joan Burton, who now wants other banks to follow suit.
She said other lenders need to do more to compete, but hopes the latest cuts will make it easier for customers to move their mortgage to a cheaper provider.
“That is, at least, a chink in the wall, particularly for anyone who has a longer-term mortgage – of, say, more than 15 years,” she said.
Ulster Bank said its new options would help homeowners reduce payments.
“We believe we can help the majority of new and existing customers who may be searching for a lower rate to reduce their repayments,” said Maeve McMahon, the bank’s Director of Products, “either by fixing at some of the lowest rates in the market or reviewing their loan-to-value and availing of our lower LTV bands.”