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RTÉ News
13-05-2025
- Business
- RTÉ News
Núa Money to cut rates on mortgages, equity release products
The newest mortgage lender in the State, Núa Money, has announced rate reductions across its residential mortgage and equity release products. Núa Money said its Switcher Extra mortgage product would see cuts of up to 0.95%, while it also has new rates starting from 3.6% a year for first-time buyers, movers and straight switcher products. Núa began lending in Ireland at the end of last year. It said it is focused on broadening the mortgage market by offering lending solutions to people who, despite having strong affordability profiles, are currently underserved by the "rigid practices" and conditions found elsewhere in the market. Fergal O'Leary, Chief Commercial Officer of Núa Money, said the lender's mission is simply to make the mortgage process simpler, fairer and more accessible to more customers by combining attractive products and competitive pricing with cutting-edge technology. "These new rates bring us another step closer to making homeownership a reality for more individuals and families across Ireland, and to opening up channels for existing mortgage holders to release some of the equity in their homes," he said. "We know that there are thousands of customers out there with the financial capacity to afford a mortgage but are currently locked out by outdated lending models. Our goal is to change that," he added. Núa Money said its 60% loan to value (LTV) five-year fixed mortgage rate would fall to 3.6% from 3.85%, while its 60% LTV five 5-year fixed would drop to 3.65% from 3.75%, its 70% LTV, 3-year fixed would drop to 3.9% from 4.15% and its 70% LTV 5-year fixed would ease to 3.95% from 4.05%. It also said that fixed rates on its Switcher Extra product, which offers equity release up to €300,000, will fall to 4.8%-5% across 60-80% loan to value bands from 5.75%.
Irish Independent
13-05-2025
- Business
- Irish Independent
Tracker mortgage holders on alert as doubt cast over expected ECB rate cut next month
ECB board member Isabel Schnabel said turmoil in the global economy was fuelling price pressures. Her comments came as a new mortgage lender cut its lending rates by up to 0.95 percentage points. Ms Schnabel said inflation was at risk of exceeding the ECB's 2pc target in the medium term. The ECB's main role is to control inflation and it uses interest rates to achieve this. The Frankfurt-based central bank has cut rates seven times in the past year, with another 0.25 of a percentage point rate cut expected on June 5, a move that would directly benefit 130,000 tracker mortgage holders. Two additional rate cuts later in the year had been expected by markets. Rate cuts should make borrowing more affordable for first-time buyers if banks and non-bank lenders pass on the lower eurozone rates in the form of lower mortgage rates. However, lower mortgage rates would also leave more new borrowers chasing a limited supply of housing for sale. Ms Schnabel cast doubt on new cuts. She wants to keep rates unchanged since they are already low enough not to hold back the European economy. 'Now is the time to keep a steady hand. The appropriate course of action is to keep rates close to where they are today,' Ms Schnabel told a conference. Financial markets see a 90pc chance of a rate cut in June and expect another cut or two in subsequent months, indicating that Ms Schnabel's view goes counter to investor bets. In the near term, inflation could even dip below the ECB's 2pc target, Ms Schnabel said. This is due to lower energy costs, a strong euro, anaemic economic growth in the eurozone and high uncertainty created by the US administration's trade war, she said. But there is a big risk that costs could go the other way, and rise, in the medium term, pushing up inflation. Inflation in the currency zone could be boosted by an expected spending surge by governments in the eurozone, driven by Germany's pledge to boost defence and infrastructure investment. Damage to international trade due to US-imposed tariffs could also push up costs and boost prices. Non-bank lender Núa Money has reduced its rates across its residential mortgage and equity release products, with cuts of up to 0.95 of a percentage point on its Switcher Extra mortgage product. Núa, which began lending in Ireland only late last year, said it would have new rates starting from 3.6pc for first-time buyer, mover and switcher products. Mortgage broker Michael Dowling said reductions in rates were always welcome. But he said that in relation to owner-occupier rates, the reduction of 0.25 of a percentage point would be geared to those borrowing less than 70pc loan to value, which would exclude the majority of first-time buyers. Mr Dowling said that, for second-time buyers, the three- and five-year fixed offerings were very competitive, where the loan-to-value is typically less than 70pc. The reduction of 0.25 of a percentage point would save borrowers €39 a month on a €300,000 mortgage, he said.
Irish Examiner
12-05-2025
- Business
- Irish Examiner
New mortgage lender Núa announces rate cut
Mortgage-lender Núa has announced interest rate cuts across its residential mortgage following further rate reductions by the European Central Bank (ECB). The announcement comes following a decision by the ECB in April to cut interest rates by 0.25% — the seventh time since summer 2024. The ECB's deposit rate now stands at 2.25% following the regulator's latest reduction of 0.25%. The company has announced a 0.25% interest rate cut on its three-year fixed rate mortgage products and a 0.10% interest rate cut on its five-year fixed rate mortgages. These rate reductions are on mortgages with loan-to-value ratios of between 60% and 70%. The company added it has cut its Switcher Extra mortgage product by 0.95%. This is across mortgages with loan-to-value ratios between 60–80%. Núa chief commercial officer Fergal O'Leary said the lender was not just cutting rates in response to the 'market conditions' but also 'reshaping the landscape to better reflect the needs of today's borrowers'. 'Whether it's a first-time buyer, switching from another lender, or releasing equity, we want to support people on their mortgage journey with a solution that's fair, fast, and built around their particular needs and circumstances,' he said. Núa is a non-bank lender and was founded in September 2021. It secured a licence from the Central Bank of Ireland during summer last year. Read More PTSB chief says bank must produce results to attract investors
