Looking for a mortgage? EBS third lender to offer cash back
A third lender is to offer a cash incentive to home buyers in a bid to get them to take a mortgage out with it.
EBS, which is part of AIB, is offering 2pc of the value of the mortgage drawn down when buyers take out a home loan with it.
Bank of Ireland was the first to offer cash back to mortgage holders, in a move that proved so popular it was replicated by Permanent TSB, and now EBS.
The offer means that a couple drawing down a €300,000 mortgage will get €6,000 handed to them in cash when the mortgage is issued. It works out at €2,000 for every €100,000 of mortgage debt.
Borrowers who sign up for the cash-back offers generally have to commit to stay with the lender for at least five years, but EBS has no lock-in period.
A spokeswoman said: "Customers do not have to stay with EBS in order to avoid a clawback on the 2pc. The bank is confident customers will stay to avail of its competitive rates."
The cash-back deal applies to first-time buyers and those moving, whether they are taking out a fixed or variable rate.
EBS chief executive Des Fitzgerald said: "We are now offering our customers 2pc of their mortgage back in cash, a substantial sum that would typically cover home purchase costs such as stamp duty, legal fees and valuation."
EBS has interest rates of as low as 3.3pc for new borrowers who are getting a mortgage for less than 50pc of the value of the property. A rate of 3.7pc applies for those borrowing more than 80pc of the value of the property. It's variable rate for existing borrowers is 3.7pc.
However, there was no EBS interest rate reduction announced this time.
AIB's variable rate is due to fall to by 0.25pc to 3.4pc on July 1. AIB is also giving a €2,000 contribution towards professional fees for customers.