Belgian banking group KBC has cut its two to 10 year mortgage rates in a move that appears to signal lower rates across the industry as the European Central Bank readies an interest rate cut that will lower borrowing costs for banks across the eurozone.
The online bank cut its two and 10-year fixed rates by between 0.20pc and 0.55pc and a 10-year mortgage will cost between 2.85pc for a 60pc loan to value and 3.20pc for an 80-90pc loan to value ratio.
“We know that our customers are looking for greater value and certainty in their repayments over longer periods and our new pricing reflects these needs. We would encourage existing or potential homeowners to come and talk to us about getting the best value for their mortgage,” said Fergal O’Riagain, KBC Bank’s Director of Products.
KBC’s move came after Bank of Ireland reversed mortgage rate rises put in place this year. The State’s second largest mortgage lender said in February that the era of mortgage cost reductions was over and predicted that rates would rise.
Bank of Ireland cut its five-year fixed rate by 0.2pc to 3pc and its 10-year rate by a similar amount to 3.3pc for those whose property is worth at least 20pc more than the value of the loan.
AIB meanwhile cut rates in April.