EBS Building Society is to introduce a new 3.25% standard variable mortgage rate for all customers from March 31. The current rate is 3.35% for existing customers, while EBS also has a six-month discount rate of 2.75% for some customers.
Chief executive Ted McGovern said many lenders were using discounts and tactical pricing to attract new business at the expense of existing customers. He said that, as a result, existing customers were subsidising growth in new business.
Announcing its 2003 financial results today, EBS also said it was committed to remaining a mutually-owned organisation.
The society reported an after-tax surplus of €53.6m for last year, up 15% on 2002. An additional profit of €6.5m was generated by the sale of its former head office premises.
Lending was up 18% to €2.5 billion, with mortgage lending for owner-occupiers up 16% to €1.9 billion.
