New entrant into the Irish mortgage market, MoCo, has cut its interest rates as it bids to build market share and take business from larger more established lenders.
The reductions by the provider, which soft launched in November of last year, will apply right away and apply to any active applications that have not yet been drawn down.
Among the changes is a five-year fixed term rate of 4.5%, dependent on loan to value, which is down from 4.65%.
While a three-year fixed rate as low as 4.6% is now available, reduced from 4.8%.
"As rates have come down over the past month, we adjusted rates in line to ensure customers benefit," a spokesperson for MoCo said.
"This is in effect immediately. We continue to be excited about the Irish market and growth opportunity."
Trevor Grant, chairman of the Association of Irish Mortgage Advisers, said the changes put MoCo on a par with most of the market.
"Along with MoCo's flexible product offering and €1500 contribution towards legal fees, these cuts are great news for mortgage customers and make MoCo a very attractive option for prospective borrowers, particularly first-time buyers," he said.
"While we don’t expect the mainstream lenders to follow suit with rate cuts, we are hopeful the non-bank lenders can increase their competitiveness with a series of rate reductions during 2024."
MoCo was set up three years ago to develop a mortgage lending platform and was previously linked with An Post's entry into the mortgage market.
But last year, Austrian bank Bawag bought MoCo for a small amount.
It currently lends through a small panel of independent mortgage brokers and is open to first-time buyers, movers and switchers.
Bawag has operations in Austria, Germany, Netherlands and the United States and has total assets of €53bn, customer loans of €34bn and customer deposits of €32bn.
It acquired Irish based Depfa Bank in 2021.
