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Finance Ireland launches 20-year fixed rate mortgages

May 18, 2021

Non-bank lender Finance Ireland has announced the launch of a 20-year fixed rate mortgage — double the length of the maximum fixed rate term previously available in Ireland.

Borrowers will retain the same rate for the 20-year lifetime of the loan, from a rate of 2.6% on a 60% loan to value (LTV) mortgage to 2.99% on a 90% LTV loan.00:39

The financial services company has also launched fixed rates for mortgages with terms of either 10 or 15 years on loans worth up to 60% of the property value, up to 70% LTV, up to 80% LTV, or up to 90% LTV.

The rate added to repayments will also decrease as the loan is paid down versus the property value, but the rate will never increase, even if the house value deteriorates versus the loan outstanding.

The announcement comes after Ulster Bank and KBC Bank Ireland both declared plans to sell their loans and liabilities and exit the Irish market, sparking concerns about a lack of competition.

‘I’ve been involved with the Irish mortgage market for over 30 years and I believe that this is one of the most significant innovations made here in that time,’ Finance Ireland CEO Billy Kane.

‘We’ve been working on the introduction of longer dated fixed rates for some time now in order to allow customers benefit from the historically low interest rates now available.’

Customers can also avail or rate portability, meaning they can switch their mortgage over to a new property without penalty, and make overpayments worth up to 10% of the balance annual.

Martina Hennessy, managing director of mortgage advisors said that ‘in addressing four keys ways why long-term fixed rates may appear unattractive to Irish consumers, Finance Ireland is introducing a unique offering to the Irish market.

‘This is another boost to the broker market, with Avant Money now offering the lowest rates and Finance Ireland offering the longest and most flexible fixed rates – both only accessible via brokers.’

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