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Jan 16 2020, 08:30 GMT
Banks
Ulster Bank and ICS Mortgages announce mortgage rate reductions
- Sectors : Banks
- Companies : permanent tsb Group | AIB Group | Bank of Ireland
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| AIB Group | OUTPERFORM | 23/01/19 | Neutral | 14/08/18 | 300c |
| Bank of Ireland | OUTPERFORM | 11/03/13 | Neutral | 14/08/12 | 465c |
| permanent tsb Group | NEUTRAL | 06/03/19 | Outperform | 01/08/18 | 101c |
DAVY VIEW
The reductions in mortgage rates announced by both Ulster Bank Ireland and ICS Mortgages are in line with our view that new lending rates will continue to fall. Rate reductions continue to be targeted rather than wholesale across all product ranges and are now more focussed on higher value and the longer-term end of fixed mortgages available in Ireland. Offsetting the reduction in front-book spreads is the ongoing pay-down of the low yielding tracker mortgage portfolio.
