Fianna Fáil TD for Cavan-Monaghan Brendan Smith says Ulster Bank’s decision to cut its 2 year fixed mortgage interest rate to a market best of 2.3% is a win for customers and marks a major shift in the Irish mortgage market.

Deputy Brendan Smith, “This announcement from Ulster Bank is a game-changer which will hopefully represent a shift in attitude by the main banks, allowing for greater competition and cheaper rates for customers.

“This 2 year fixed rate of 2.3% is by far the lowest rate in the market and is available to new and existing customers.  This is a smart move by Ulster Bank, which needs to be backed up by smart thinking among mortgage holders.  Consumers should now be prepared to shop around to get the best deal on their mortgage – if enough people are prepared to switch, banks will be forced to lower their rates.

“Consumers are beginning to wake up to the fact that they have been ripping off mortgage customers for years but they need to act to pressure the banks to reduce rates.

“Today’s announcement by Ulster Bank is great news for consumers. I would urge now other players in the market to follow suit and cut their interest rates. Even with this move, interest rates charged on mortgages in Ireland are the highest in the Eurozone. According to the latest figures from the Central Bank the average interest rate across the euro area stands at 1.8% with Ireland being the highest at 3.15%.  Mortgage holders should not tolerate paying more than they need to”.