Bank of Ireland ups ante in first-time buyer battle with €1,000 cash offer

THE battle waged by banks and building societies to capture first-time buyers has intensified after Bank of Ireland said it would pay €1,000 to those who take out their first mortgage with it.

The offer of free money is the latest attempt by lenders to entice nervous new buyers back into the market.

Bank of Ireland, AIB and Halifax have spent the past few months cutting the rates they offer to first-time buyers to encourage them into the mortgage market. And Ulster Bank is offering new buyers a guarantee against negative equity on a limited number of housing developments.

Now new buyers who take out a mortgage with Bank of Ireland, or its subsidiary ICS Building Society, before the end of September will be offered €1,000 in cash. Buyers who take up the offer will have to hand back the money if the mortgage is redeemed within five years.

Brokers
Bank of Ireland is also offering what mortgage brokers said was the lowest rate in the market for first-time buyers with a rate of 2.49pc, fixed for a year. This offer is only available until the end of June.

Further rate cuts are expected as the European Central Bank is expected to slash rates by 0.5pc this Thursday.

Bank of Ireland is also offering a 20pc discount on mortgage repayment insurance, which is designed to pay out if the mortgage holder is made redundant or becomes ill or has an accident.

Irish Independent Tuesday March 03 2009

By Charlie Weston