Bank of Ireland boosts mortgage cashback deal

As competition in the Irish mortgage market heats up...

Bank of Ireland boosts mortgage cashback deal

A Bank of Ireland branch is pictured in Belfast, Northern Ireland | Image: PETER MUHLY/AFP/Getty Images

Bank of Ireland has announced that it will offer its mortgage customers a 3% refund with its new Cashback Plus deal.

The bank's existing 2% cashback deal was set to expire at the end of September, but has now been replaced with the improved offer.

The Cashback Plus scheme will give home buyers 2% cashback on their new mortgage at drawdown, plus an extra 1% cashback five years later.

It is available to Bank of Ireland's current account customers who draw down a buyer, mover or switcher mortgage before March 31st next year.

It means those getting a €150,000 mortgage will get €3,000 straight into their account, along with an extra €1,500 after five years.

The number of mortgages approved in Ireland was up nearly 25% in the second quarter, with 6,803 new mortgages drawn down between April and June. Ulster Bank recently lowered its three-year fixed interest rate on mortgages from 3.2% to 2.99%, making it the lowest fixed rate in Ireland. In July, Pepper Homeloans reduced its variable rates to as low as 3.1%.