Ulster Bank takes the lead on rates drop.
Some good news on the Banking front .Ulster Bank is to reduce its fixed rates for new and existing customers and also make it easier for them to qualify for these new interest rates .
Ulster Bank will offer a three-year fixed rate of 2.9% for those whose loan is less than 60% of the value of the property .
The Bank describes this as its loyalty plus rate and claims it is the lowest in the market and the new rate compares with a normal three -year fixed rate of 3.25% .
Ulster Bank is also cutting its variable rate for loyalty customers to as low as 3% for those with a lot of equity in their home .This compares with the bank’s standard variable rate for those with a 90% loan of 4.3%
At last variable rates are starting to move down with KBC Bank slashing rates to 2.9% for new and existing customers late last year
Ireland has over 300,000 homeowners on variable rates which are around 1.5% higher in Irelandvthan other euro zone countries .
Of course the big question that arises for borrowers is should we fix at this time or not and of course that depends on your own circumstances .
However the drop in rates by Ulster Bank is very welcome and will hopefully lead to other banks following their lead.
