EBS is the latest mortgage lender to offer a cash incentive to house buyers with a €2,000 cash back deal for every €100,000 borrowed – so €4,000 in cash back on a €200,000 fixed or variable rate mortgage.
The offer reflects the increasing popularity of cash-back mortgage arrangements – Bank of Ireland and Permanent TSB are also offering similar loans. EBS is owned by AIB, who will target its mortgage products at different sectors of the market.
AIB’s standard variable rate mortgage is due to fall by 0.25% to 3.4% on July 1, but the standard rate at EBS looks set to remain at 3.7%.
While customers who sign up to cash-back offers with other lenders are required to commit to that lender for five years, this product has no lock period.
"Customers do not have to stay with EBS in order to avoid a clawback on the 2%. The bank is confident customers will stay to avail of its competitive rates," a spokesperson said.
Chief executive Des Fitzgerald commented on the new offering: "We are now offering our customers 2pc of their mortgage back in cash, a substantial sum that would typically cover home purchase costs such as stamp duty, legal fees and valuation."
