EBS cuts its fixed rates - but not its variables
Existing customers of EBS are set to be disappointed as the lender confirmed it is not cutting its variable rate.
However, the former building society, which is part of AIB, is slashing its fixed rates for new and existing customers.
These lower fixed rates are set to challenge Bank of Ireland, Ulster Bank, Permanent TSB and KBC Bank. EBS is also extending its popular 2pc cash-back offer for first-time buyers and switchers.
AIB is the parent company of EBS, and kicked off the latest mortgage price war with reductions in its variable, fixed and loan-to-value rates last month. However, the EBS variable rate will remain 3.7pc.
Both AIB and its broker-focused offshoot, Haven, have reduced their variable rates by 0.25pc to 3.15pc, the joint lowest in the market.
These reductions will save a family on a €200,000 mortgage around €320 a year. The EBS variable rate will now be more than half a percent higher than it is at AIB and Haven. AIB Group sells mortgages under the AIB, EBS and Haven brands.
Despite the disappointment for variable customers, EBS is, however, announcing reductions of up to 0.55pc across all its fixed rates.
Mortgage expert Michael Dowling welcomed the fixed-rate cuts, but added: "The failure of EBS to cut its variable rate means it will now be more than half-a-percent higher than it is at AIB and Haven. Cash-back offers are no use to existing EBS customers. They should switch to AIB."
EBS, which has 71 offices nationwide, has a different business model to AIB and Haven, as it wants to compete with Bank of Ireland and Permanent TSB, which are hoovering up business with their cash-back offers.
EBS is extending its 2pc cash-back offer until the end of March.
It means new customers and switchers will receive €2,000 back for every €100,000 in new mortgage borrowing drawn down.