Announcements

Finance Ireland launches comprehensive residential mortgage product range to compete with high street banks

19 March, 2019

All announcements

Finance Ireland – Ireland’s largest non-bank lender – has launched a comprehensive range of residential mortgage products to compete with the main banks. It entered the residential mortgage market last December through the acquisition of Pepper’s residential mortgage business.

Finance Ireland will distribute its mortgage products exclusively through regulated mortgage intermediaries. It will provide a complete range of variable and fixed products and has set its rates at the very competitive end of the market. The new mortgage range is targeted at the main residential mortgage market and complements its existing offerings in the non-standard segment.

Finance Ireland has confirmed that it will operate a Loan-to-Value (LTV) pricing policy which will allow customers to access lower variable interest rates as their LTV improves. To access lower rates at any time, customers may have to provide a new property valuation from Finance Ireland’s panel of approved valuers. Customers can decide to have a new valuation at different times through the life of the loan. Finance Ireland will also be contacting all its mortgage customers annually regarding the LTV bands that customers may be eligible to move to due to improvements in their LTV.

The focus will therefore be on a “lifetime value” approach rather than up-front cash back offers which can be more costly over the longer term. The company believes it has the strongest customer proposition in the market in terms of choice and the spectrum of customers it can lend to.

Key features of the Finance Ireland product range include:

Maximum Loan-to-Value • 90% for First Time Buyers* • 80% for Movers* • 70% for Investors / Buy-to-Let
Terms Up to 35 Years
Amount Which Can Be Borrowed Up to €1.5 million
Rates Rates in LTV bands and can reduce over the life of the loan. Variable rates start from2.75% for loans of less than 50% Fixed rates start from 2.55% (3 years up to 60% LTV)
Treatment of New and Existing Customers No difference

* (will also offer exceptions to the above up to Central Bank limits)

 

Speaking today, Billy Kane, Chief Executive of Finance Ireland said; “Finance Ireland is now a substantial business that challenges the main banks across a number of sectors including car finance, commercial property, SME lending and Agri Finance. We are delighted to expand our offering in the residential mortgage market where there has been too little competition for too long. Our goal is to build a substantial mortgage business based on long term fair and transparent pricing combined with exceptional customer experience delivered via our appointed mortgage intermediaries. We are delighted with the response we have received to date since entering the market only a few short months ago.”

Kane said that the company would make the most of its start-up position in the mortgage market; “all our credit decisions are taken under one roof locally which lends itself to a superior service proposition which we are rolling out. Our emphasis is on fair pricing over the long term and, unlike some players in the market, we offer the same pricing to new and existing customers.”

About Finance Ireland

Finance Ireland Group is Ireland’s largest non-bank lender providing finance across multiple platforms including agri, commercial real estate , auto, leasing and residential mortgages. Finance Ireland is regulated by the Central Bank to provide residential mortgages. It is a privately-owned business with a significant minority investment by major Irish and international institutional investors. The specialist lender, which was established in 2002 is headquartered in Ballsbridge Dublin 4 and currently employs 140 people.

PDH Mortgage Rates

Variable Rates
LTV Rate APRC
=< 50% 2.75% 2.81%
=< 60% 2.95% 3.02%
=< 70% 2.95% 3.02%
=< 80% 2.95% 3.02%
=< 90% 3.15% 3.22%
3 Year Fixed Rates
LTV Rate APRC
=< 50% 2.55% 2.75%
=< 60% 2.55% 2.90%
=< 70% 2.60% 2.91%
=< 80% 2.60% 2.91%
=< 90% 2.65% 3.07%
5 Year Fixed Rates
LTV Rate APRC
=< 50% 2.60% 2.74%
=< 60% 2.60% 2.85%
=< 70% 2.65% 2.88%
=< 80% 2.65% 2.88%
=< 90% 2.80% 3.06%
7 Year Fixed Rates
LTV Rate APRC
=< 50% 2.95% 2.94%
=< 60% 2.95% 3.02%
=< 70% 3.40% 3.30%
=< 80% 3.40% 3.30%
=< 90% 3.60% 3.51%

Issued on behalf of Finance Ireland by Gordon MRM
Ray Gordon
Ph: 087 2417373