Finance Ireland announces major innovation for Irish mortgage market

Finance Ireland announces major innovation for Irish mortgage market

  • Launches 20-year fixed rate mortgage – from just 2.60% (2.66% APRC)
  • Twice the length of longest fixed rate currently available
  • Range of terms and options give unprecedented flexibility
  • “One of the most significant innovations in the Irish mortgage market in 30 years” – Billy Kane, Finance Ireland CEO

Finance Ireland has announced a major innovation for the Irish mortgage market.  The company – which entered the residential mortgage market in 2018 – has launched a range of long dated fixed rate mortgages for owner occupiers.

The maximum term of 20 years is twice as long as currently available to Irish mortgage customers.  It will mean that many home buyers may be able to  have a fixed rate for the full term of their mortgage..1 

The  fixed rate terms launched today are for periods of 10, 15 and 20 years.  The fixed rates range from 2.40% to 2.99% (APRC: 2.58% – 3.06%) depending on Loan to Value (LTV) and the fixed term period.  A 20 year fixed rate mortgage for up to 90% of the value of the home is priced at just 2.99% (APRC: 3.06%).

Finance Ireland has developed these products in conjunction with their long standing residential mortgage funding partners M&G Investments.  The mortgages have a range of unique features never available to Irish mortgage customers before.

 4 Key Features:

Unprecedented fixed rate periods The fixed rate terms available are for 10,15 and 20 years and for mortgages up to 90% LTV. Currently, the longest fixed rate available in the Irish market is 7 years with a handful of providers offering a term of 10 years but capped at an LTV of 80%. The Finance Ireland fixed rates are available for up to 90% LTV mortgages.
Rate portability Customers can move their mortgage to a new property during the term of the fixed rate without incurring any penalty – subject to normal underwriting.
Overpayments allowed Customers will have the option to pay back a lump sum of up to 10% of their outstanding mortgage balance, without penalty, in each year of the fixed term.
Reducing rates as LTV improves The fixed rate will decrease as the loan is paid down versus the property value. LTV (loan-to-value) driven reductions to a customer’s fixed rate will be downward only – rates will never increase even were there to be a deterioration in house value versus loan outstanding

1If a mortgage terms extends beyond  20 years, relevant customers can roll their loan to any other Finance Ireland product (fixed or variable) at the conclusion of the fixed term.

Finance Ireland:

Finance Ireland was founded and is led by banking veteran, Billy Kane.  The company  has a range of finance products across multiple platforms including residential and commercial mortgages, auto finance, SME & Agri finance and leasing.  The company employs 160 people and  is backed by key institutional investors including the Ireland Strategic Investment Fund (ISIF) which owns 30% of the business.

Finance Ireland Credit Solutions Designated Activity Company, trading as Finance Ireland Residential Mortgages, Finance Ireland Agri, Finance Ireland Leasing, Finance Ireland Commercial Mortgages and Finance Ireland is regulated by the Central Bank of Ireland.

Quote from CEO Billy Kane:

“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. 

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.   

These fixed terms combined with flexible features provide exceptional certainty for customers and are a stated priority of the Government (ref:  Programme for Government).  We  only distribute our mortgages through regulated intermediaries which ensures that all of our customers have advice about the suitability of any product to their specific needs.” 

Details on the terms and rates

Loan to Value(%) 10 Year Fixed APRC 15 Year Fixed APRC 20 Year Fixed APRC
60% or less 2.40% 2.58% 2.50% 2.58% 2.60% 2.66%
70% or less 2.55% 2.70% 2.65% 2.72% 2.75% 2.81%
80% or less 2.70% 2.82% 2.80% 2.87% 2.90% 2.96%
90% or less 2.85% 2.98% 2.95% 3.03% 2.99% 3.06%

Issued on behalf of Finance Ireland by Gordon MRM

Ref: Ray Gordon – 087 2417373