ICS cuts mortgage rates to lowest in market

Big banks getting squeezed on mortgage rates and product innovation by non-bank lenders distributing through mortgage brokers - Sub-2% rates becoming the new norm

Trevor Grant, Chairperson of Association of Irish Mortgage Advisors commented : ‘The announcement today by ICS cutting its fixed rates and delivering the lowest variable rate in the market (2.45%), combined with the launch of market-beating rates and products delivered by Finance Ireland and Avant Money earlier this summer, has finally put a death knell on the outdated concept of consumers only approaching their existing current account provider and expecting them to deliver the best deal in the market.  Your own bank may offer you their best mortgage terms, but they are not obliged to tell you that better terms are available with other lenders.

Avant Money entered the mortgage market last August, offering rates from 1.95% exclusively through mortgage brokers, they and Finance Ireland launched new long term flexible fixed rate products earlier in the summer.  ICS have now become the first Lender to match this market leading rate, making sub-2% the new norm for many homeowners with strong levels of equity in their homes. In addition ICS and the non-bank Lenders offer a range of product flexibility to complement their interest rate offerings.

Currently over 80% of new mortgage holders avail of a fixed rate mortgage.  The development and interest rate reduction in lower and longer term rate fixed offerings, available for homebuyers at all loan to value bands, means that the majority rather than the minority of consumers can now secure a lower rate on their new or existing mortgage.

With many of the best mortgage terms only available through mortgage brokers, it’s not surprising that the percentage of mortgage applicants through mortgage brokers has grown from 25% in 2019 to  40% today. This figure is expected to rise if consumers continue to insist on getting market based advice in order to obtain the best terms in the market for their mortgage. 

From a consumer perspective it is extremely positive to see non-bank Lenders so committed to the mortgage market at a time when some Banks have decided to exit. Non-bank Lenders have lower costs, are agile and have clearly demonstrated that they are capable of delivering product development and innovation.   This can only be viewed as good news for consumers.’

Article Published: 05/08/2021