The nonbank lender will cut its three- and five-year fixed rates by half a percentage point from the start of June.
The nonbank lender, owned by Dilosk, will cut its three- and five-year fixed rates by half a percentage point from the start of June. That will bring its three-year rate for a loan of up to 80 per cent of the value of a property to 5.2 per cent and its five-year rate to 5 per cent, according to the group’s chief executive Fergal McGrath.
Although Mr McGrath declined to comment on future rate decisions, he said the company has a goal to “pass on” any reductions in its own funding costs to customers.ICS, which accounted for about 5 per cent of new Irish owner-occupier loans in 2021, pulled back from the market in the summer of 2022 as its parent, Dilosk, saw its funding costs spiral on the wholesale and capital markets. hiked rates in recent years, as they can use cheap deposits to fund much of the loan books.
ICS has also now moved to increase the repayment age on home loans from 70, which has been the limit among lenders in the Irish market until recently, to 80. However, borrowers will have to demonstrate capacity to continue to make payments up to this age, including rental and pension income.It follows on from MoCo, a new mortgage lender in the market, owned by Austrian bank Bawag, unveiling a product earlier this year that allows repayments up to 80.