Widely different rates being offered to first time buyers

September 4, 2012 The MyHome Newsdesk by The MyHome Newsdesk
Widely different rates being offered to first time buyers

A new report has found that first time buyers who take out mortgages are being charged hugely different interest rates by lenders, with a difference of €1,400 a year between the most expensive and cheapest.

Bank of Ireland subsidiary, ICS Building Society, has emerged as the most expensive for first-time buyers, with its 4.8% rate far exceeding AIB’s 3.74%.

Permanent TSB will offer new buyers a rate of 3.99% for a year from this week on but this will rise to 4.34% after a year.

Bank of Ireland and Ulster Bank both charge 4.5% for new buyers while EBS, Haven and National Irish Bank charge 4.35%. KBC Bank has a rate of 4.25%.

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Mortgage brokers, including MyHome.ie blogger Karl Deeter of Irish Mortgage Brokers, said that 80% of all mortgage applications are being turned down meaning new buyers could often only get a mortgage from more expensive lenders such as ICS.

According to today’s Irish Independent, the difference in rates charged by  cheapest lender AIB and dearest lender ICS for a €200,000 mortgage works out at €118 a month in repayments, which costs €1,416 over a full year.

AIB increased its standard variable rates this morning with new buyers set to be charged between 3.5% and 3.7% interest, depending on the size of their deposit.

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Uncategorized AIB Bank of Ireland EBS first-time buyers Haven

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