ESB Makes Cuts To Mortgage Rates

July 26, 2021
Makayla Santino

Many EBS customers will be able to save on their current mortgages after an announcement from the building society made a statement that the company will be cutting its three- and five-year mortgages by 0.15 percent. The new rate came into effect last Thursday.

EBS is a financial institution of Ireland that services over 400,000 customers and disburses its products through a branch and franchised agency network. EBS was also known as Ireland’s largest building society until July of 2011. EBS is now owned by Allied Irish Banks (AIB). 

After the reduction on the mortgages, they will sit at 2.75 percent. This will lead to improved value for both first time buyers and those that switched to find fixed rate certainty. Despite the decreased rate, EBS continues to be one of the most pricey in the market of similar products. 

The rates will be open to both existing and new customers with any loan-to-value (LTV) ratio. Those that are new mortgage customers will be able to utilize up to 3 percent cash back of any new mortgage borrowing. For example, a customer will be able to collect €3,000 back for every €100,000 in mortgage loans completed.

The cash back option will be available to customers taking out variable or fixed rate loans on private welling homes. The loans must be drawn before December 31st to be eligible. This will encompass customers moving to a new house, first-time buyers, and customers looking to move their current mortgage to EBS.

To better understand how the rate decrease will impact customers, we can utilize examples. A customer has a 20-year mortgage that sits at €282,615. When comparing the new rate and cash back option to a non-cash back lender, the customers would be able to save up to €6,500 across the first five years of the mortgage. 

Further, take a customer with a 25-year mortgage at €300,000. Say the customer is currently lending at a standard variable rate of 3.7 percent with a LTV ratio above 80 percent. The customer will be able to save €150 per month on repayments if they decide to shift to the new 2.75 percent five-year fixed rate. 

The variable rates offered by EBS range from 2.75 percent to 3.15 percent depending upon the LTV. The managing director of EBS, Paul Butler, has stated that these new offerings were incorporated to make sure that the company can provide competitive services in the mortgage industry in Ireland. Time will tell if these incentives are enough for consumers in Ireland to switch to EBS.




Gleeson, Colin. “EBS To Cut Its Three and Five-Year Fixed Rate Mortgages.” The Irish Times, 19 July 2021,

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