Competition in the mortgage market intensified yesterday as Bank of Scotland Ireland became the latest bank to offer a cut-price mortgage aimed at switchers from other lenders.
The bank's Switch and Save mortgage has the lowest discounted variable rate in the market at 2.7 per cent for customers with loans of less than 75 per cent of the value of their property and 2.95 per cent for loans of more than 75 per cent of the property value.
The rate tracks the European Central Bank (ECB) base rate, which is currently 2.25 per cent.
After two years, the margin on the mortgages reverts to one percentage point over the ECB rate for loans of less than 75 per cent loan to value (LTV) and 1.25 percentage points for loans of more than 75 per cent LTV.
Bank of Scotland Ireland said it would pay €1,000 towards the legal fees of people remortgaging from other lenders and €150 toward valuation fees.
The bank's announcement follows a move by National Irish Bank in January to pay €1,000 to borrowers who switch to its fixed-rate mortgages, which are the cheapest fixed rates in the market.
Bank of Scotland Ireland also launched tracker mortgages for first-time buyers yesterday, offering up to 100 per cent finance and an interest-only option for up to two years.
People moving house can borrow up to 95 per cent of the value of their new home and avail of the discounted tracker rates.
