ICS Mortgages has today announced cuts in its variable and fixed mortgage rates and the launch of a new feature designed to provide greater financial flexibility for owner occupier borrowers.
This follows the latest euro zone interest rate cut by the European Central Bank today.
The lender, which is owned by Dilosk, said the changes announced today are aimed at supporting customers in an evolving interest rate environment and meeting the changing needs of Irish homeowners.
ICS Mortgages said its variable mortgage rates for both owner occupier and buy-to-let customers will reduce by 0.2%, while its new variable rates will start from 4.5%.
It also said it will cut its three-year fixed interest rates, adding that three-year fixed rates for new customers will start from 3.85% and three-year fixed rates available for existing customers will start from 4.1%.
Former Ulster Bank Flexible Mortgage customers who migrated to Dilosk and who are currently on non-tracker variable rates will see no changes to their rate, it added.
The new reduced rates will be available from May 12.
ICS also today said it would introduce a new mortgage with a two-year interest-only period, which reduces monthly repayments for the first two years by incorporating a 24-month interest-only period at the beginning of the mortgage term.
This is then followed by capital and interest repayments for the remaining term and will be available on a five-year fixed interest rate.
The new product is designed for first-time buyers, movers and switchers.
The lender said that by deferring standard capital repayments for the first two years, borrowers can benefit from reduced monthly outgoings in the first two years, before moving to full capital and interest repayments.
This feature will be available to new customers from April 23.
Ray McMahon, Chief Commercial Officer at ICS Mortgages, said the new two-year interest-only option which will be attractive for all borrowers and in particular first-time buyers.
“Using our current five-year fixed rate, a customer with a €250,000 mortgage over a 30-year term would pay €1,229 per month on capital and interest. By availing of the two-year Interest Only feature, the monthly repayments for the first two years will be €885 per month. At the start of year three, the monthly repayment will transition to capital and interest and will be €1,273 per month,” Mr McMahon explained.
“The total cost of credit including the Interest-Only feature is €231,409, compared to €223,547 for a capital and interest mortgage.” Mr McMahon concluded.
ICS Mortgages has been providing mortgage services in Ireland since 1864.
