Bank doubles its cash offer as mortgage war heats up
Bank of Ireland has upped the ante in the battle to get mortgage business, by doubling the cash it will give to first-time buyers and movers who take out a home loan with it.
The bank is offering 2pc of the value of the mortgage, with no strings attached.
This amounts to €8,000 for a €400,000 mortgage, with the offer also applying to buy-to-let mortgages. The deal is limited to all mortgages drawn down before the end of this year.
It comes days after the bank cut its fixed mortgage rates for the second time this year, but the bank has so far resisted calls from Finance Minister Michael Noonan to reduce its high variable rate.
The cash-back offer was 1pc from Bank of Ireland up to now.
The bank, run by Richie Boucher, said the offer was available to first-time buyers, movers, buy-to-let, and switchers whether they choose fixed or variable rates, or a combination.
"It is applicable on all mortgages drawn down with Bank of Ireland until December 31, 2015. The offer is not capped - we will pay cash back equal to 2pc of the mortgage amount on qualifying mortgages drawn down."
Mortgage broker Michael Dowling said this was the bank's strategy in response for demands to lower its variable rate, which is one of the highest in the market at 4.5pc.
He said AIB is offering a lower mortgage rate at 3.9pc, but the allure of cash in the hand was proving hugely attractive.
Meanwhile, the European Central Bank (ECB) left interest rates at a record low 0.05pc. The decision to leave the cost of borrowing unchanged was widely expected after the ECB cut rates to rock-bottom levels last September and said they had hit "the lower bound".