Irish mortgage lender Núa has rolled out what it says are “significant rate reductions” across its suite of residential mortgage and equity release products, with the cut on some rates coming close to 1 per cent.
The newest mortgage lender in the State only entered the market late last year and said that it would offer fixed rates starting at 3.6 per cent for first-time buyer, mover and straight switcher products.
Núa operates through brokers and its rates tend to be higher than some of its competitors, but its chief commercial officer Fergal O’Leary said the new rate offerings would move the company “a step closer to making home ownership a reality for more individuals and families across Ireland, and to opening up channels for existing mortgage holders to release some of the equity in their homes”.
He said there were “thousands of customers out there with the financial capacity to afford a mortgage but are currently locked out by outdated lending models” and said the lender’s goal “is to change that”.
While it boasted of offering rate cuts of close to 1 per cent, the reductions on most of its products are considerably more modest. It is offering a three-year fixed rate for people with a loan-to-value (LTV) ratio of 60 per cent of 3.6 per cent, down from 3.85 per cent, while a five-year fixed rate for the same cohort is available at 3.65 per cent, down from 3.75 per cent.
[ Former bonds trader targets gaps in the Irish mortgage marketOpens in new window ]
For those with LTVs of 70 per cent, the three- and five-year rates are 3.9 and 3.95 per cent respectively.
The biggest cuts are being made available to people looking for a loan with equity release of up to €300,000. Rates for those with an LTV of between 60 and 80 cent fall to 4.8 per cent from 5.75 per cent while a homeowner who is mortgage free can get equity of up to €400,000 released at rates of between 4.6 and 5.25 per cent compared with a rate of 5.5 per cent that was previously on the table.
Mr O’Leary said that by “reducing rates and expanding access, we’re not just responding to market conditions, we’re reshaping the landscape to better reflect the needs of today’s borrowers.
“Whether it’s a first-time buyer, switching from another lender, or releasing equity, we want to support people on their mortgage journey with a solution that’s fair, fast and built around their particular needs and circumstances.”
