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Wednesday 24 May 2017

More mortgage switching 'not helpful to banks'

Charlie Weston

Charlie Weston

MORE mortgage-switching by consumers would be "unhelpful" for banks, Goodbody Stockbrokers has said.

It was reacting to Ulster Bank's plans to cut its four-year fixed-mortgage rate to a market-beating 3.29pc in an effort to attract switchers as part of a consumer initiative from the One Big Switch campaign.

Thousands of mortgage holders registered with One Big Switch, which has now done a deal with Ulster Bank.

Around 9,000 homeowners signed up for the campaign, which allowed it to negotiate with the bank and unlock a lower interest rate deal.

But Goodbody analysts Eamonn Hughes and Sarah Dunne said in a note to investors that banks were now likely to try to attract mortgage switchers.

"Increased competition is likely to lead to higher levels of activity in the switcher market, which is unhelpful for Irish banks," the analysts concluded.

Irish Independent

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