Mortgage war intensifies with KBC offering 10 year fixed rate
More shots have been fired in the mortgage war with KBC Bank introducing a new low-cost fixed-rate deal for new and existing customers.
It comes just days after AIB challenged the market with a range of rate cuts.
Financial experts said banks cutting rates were signs that they are stepping up competition, with more cuts now expected from other lenders.
KBC Bank is launching a 10-year fixed-rate deal of 2.95pc to entice Irish borrowers into continental-style longer-term fixed rates.
The new fixed rates will be available from October 2 to new and existing mortgage holders.
There are two new rates based on the loan to value (LTV) ratio.
The 2.95pc rate applies to those whose property is worth at least 40pc more than the mortgage owed on it - they have an LTV of 60pc or less. For those with at least 20pc equity in the property, or an LTV of 80pc or less, the rate on the 10-year fixed is 2.99pc.
The rates include a mortgage discount of 0.2pc for customers who have a current account with KBC.
Bank of Ireland is the only other lender to offer a 10-year fixed rate, but its rate is 4.2pc.
The launch of the new KBC rate comes as the bank confirmed that seven out of 10 of its customers drawing down a mortgage are now opting for a fixed rate. This is double the proportion from last year. Most are opting for the bank's existing five-year rate.