There is some very good news for first time buyers as mortgage lender KBC Bank has cut interest rates by around a quarter of a percent
The decision by KBC to slash the interest rate it charges will offer first time buyers a competitive alternative in a market where many mortgage lenders, in particular pillar banks AIB and BOI, have increased their rates in recent times. The Belgian bank’s rate for new mortgage loans at a loan-to-value of up 80% now stands at only 3.99% – down from its previous higher rate of 4.21%.
The cut comes at a time where there is cautious optimism for a recovery in the Irish property market and there are signs of confidence coming from lenders to lend to potential homeowners. Permanent TSB, who in recent years had lent very little to first time buyers, actually reduced its interest rates a few months ago to get more new business through their doors.
And it’s not just current lenders who are confident for the future. International asset management company, Investec Bank, intends to enter the Irish mortgage market for the first time from the end of this year. For KBC however, the mortgage interest rate cut is just a first of many changes it is implementing to make itself more attractive to Irish consumers. While more and more branches across the country are being closed by other banks, KBC is planning to open eight branches nationally and will also offer customers a current account.