ULSTER BANK WILL be reducing its fixed mortgage rates by up to 0.35% later this month.
The rates, some of which are a full percentage point lower than the bank’s current variable rate of 4.3%, will be made available to existing customers from 17 July onwards.
The lowest fixed rate will now be 3.3% for three years, and applies to customers who owe 60% or less on their mortgage than their property is worth.
For customers who owe 80% or less, they can avail of a rate of 3.55% for three years.
The bank said customers currently on a variable rate of 4.3% can save €1,878 in a year on a €300,000 mortgage by availing of the new three-year fixed rate of 3.3%.
An existing mortgage customer with a €300,000 mortgage that is worth 60% of the house’s value could save €951 by switching to a rate of 3.8%.
Noonan’s warning
Finance Minister Michael Noonan had set a deadline of 1 July for banks to respond to his calls for cuts to rates – or else face levies.
Ulster Bank reduced its variable rate in February.
Today’s news comes after Permanent TSB announced a cut to its variable interest rates earlier this week. The bank said more than 70,000 existing customers on mortgage rates of 4.5% will have the option to move to new rates starting from 3.7% from August.
A number of other banks have reduced fixed and variable mortgage rates in recent months. AIB announced a cut in variable rates, while Bank of Ireland reduced its fixed rates and KBC Bank launched lower fixed rates.
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