House hunters have been warned not to fall for “glitzy” mortgage offers from banks which could end up costing thousands of euro extra in the long term.
The alert comes as it was revealed some lenders are offering up to €1,500 in cash to entice would-be applicants.
The Association of Expert Mortgage Advisers has advised those looking for a home loan to shop around and not to fall for special offers which could cost them dearly.
Boss Ken Murray said when it comes to taking out mortgages it should be a case of buyer beware.
He added: “Banks are making aggressive moves in the market to shore up the lucrative first-time buyer cohort. But buyers must do their due diligence before accepting what, on the face of it, might seem like a very generous offer from the banks.”
It has emerged Ulster Bank is offering €1,500 in cash, while Permanent TSB will hand over €1,000 to those who take out a mortgage.
KBC Bank will give applicants six months’ free insurance with mortgages and will hand over €1,000 cash on remortgages.
Bank of Ireland is offering up to 2% of the value of the loan which could amount to a sizeable sum on a large mortgage.
Mr Murray said many of the offers that are heavily marketed are often only open to a certain group of people who fit into a specific category.
He added: “Borrowers must remember while lenders want your business they also want profit.
“Apparently ‘lucrative’ offers might end up costing you in the long term, like the cost of switching to avail of a deal, or the rate you will roll off to after the initial introductory offer has expired. You can’t just look at the offer at face value.”
