IN a move highlighting the intense competition in the mortgage market, the EBS building society has said it is deferring a 0.25 percentage point increase in mortgage rates for another four months.
The society, which put off raising its rates last September, said yesterday that borrowers would not now face higher rates until the end of April 1997.
EBS, which is a mutual society owned by its members, has estimated that its mortgage customers have already benefitted by £800,000 by the move. Delaying a further increase until after next April will save borrowers another £1 million, according to EBS chief executive, Mr Pat O'Reilly. Its variable mortgage rate will stay at 6.6 per cent over the next four months.
EBS was the only institution not to raise it mortgage rates in the last round of rate increases last September. It then indicated that it would allow mortgage rates to rise in the new year.
Earlier this year the EBS stepped up its efforts to win a greater share of the Irish mortgage and savings market, giving its members a share of the profits through higher rates of interest and savings and reductions in the cost of mortgages.
This package, according to the EBS, will reduce the society's profits by around £5 million this year.