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Mortgage market competition increases further – All you need to know in 30 seconds

Alison Fearon from Switcheroo.ie provides an update on new competition in the mortgage market

After a sunny hot spell in August, we now have the great news that Covid restrictions will be eased further over the coming weeks and with kids back in school and talk of offices reopening, what other good news could there be? Well, counter to expectations there is fierce competition heating up in the mortgage market!

With the unfortunate news that Ulster Bank and KBC were going to leave the market a few months ago, many felt this would spark a new era of bad news for consumers and competition. Well, that is not what is happening. It appears that a combination of recent new entrant Avant, and the opportunity to land grab from banks leaving the market has triggered the remaining lenders into competing heavily with reduced rates and new mortgage features.

In recent months, lenders have announced new, lower mortgage interest rates including two lenders offering rates as low as 1.95% (for loan to value <60%).In recent months, lenders have announced new, lower mortgage interest rates including two lenders offering rates as low as 1.95% (for loan to value <60%).

Two lenders are helping customer lock in the super-low interest rate environment we have been in by offering ‘mortgages for life’ at rates as low as 2.6% for a 20-year loan or 2.85% for a 30-year loan (for loan to value <60%).

Other lenders are leading with ‘Green’ mortgage offers with rates as low as 2.15% for 4-year fixed rate up to 90% loan to value. To be able to get a green mortgage your property needs to have an energy rating of B3 or higher. For those of you who are climate conscious and have the right BER ratings on your property these are great new introductions for you to consider. You can also release equity to improve your home to improve the rating (insulation, windows, boiler) and be able to avail of this rate.

So now, when you are thinking about funding your new property or looking to save on your existing mortgage you should be thinking rate, variable/fixed, cashback, term and climate… don’t worry we have your back on this and compare mortgage offers across the lenders to get the best mortgage for you. Register @switcheroo.ie and we will help you navigate the options on the market and take the pain out of the process, and our advice is free.