May
05

Luck of the Irish?

British Banks are offering mortgages to first-time buyers in the Irish Republic at half the rate that they are available in the UK.

Halifax, part of the Lloyds Banking Group, is charging 2.74 per cent for a two-year fixed-rate deal to first-time buyers in Dublin. A five-year fixed-rate deal would cost borrowers in its home town of Edinburgh 6.14 per cent. Royal Bank of Scotland (RBS) is charging 2.95 per cent for a new mortgage in Ireland; in the UK, it charges 5.99 per cent for a similar product.

Obviously the banks are speculating that the Euro will strengthen against the pound in the foreseeable future.

Source: The Times

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