Bank of Ireland’s Marketing Gimmick

Recently, the Bank of Ireland has been accused of a marketing gimmick. The Bank of Ireland has launched a new mortgage product that does not offer cash back. The bank has maintained a high market share. Bank of Ireland has been offering up to 3% in cash back of the value of the mortgage taken out. However, the Bank does not have the lowest rates in the market.

Cash back can be defined as money back from a mortgage. For example, if an individual borrows €200,000 he or she may get back €6,000. The first 2% of cash back is paid at the time the mortgage is taken out. The other 1% is paid at the end of year five.

However, the bank has now introduced a High Value Mortgage Interest Rate with no cash back. The new mortgage product is the first fixed rate product without cash back that the Bank of Ireland has one since the introduction of cash back in 2014.

The High Value Mortgage Interest Rate only applies to people borrowing more than €400,000. The product is also only applicable to new drawdowns. Also, the rate applies only to residential properties and is targeted towards first tie buyers, equity release and switcher loans.

Individuals taking out the new High Value Mortgage Interest Rate loan could qualify for a .2% discount on the interest rate if they are buying a house that is A rated under the Building Energy Regulations. This would take the rate down to 2.3% over five years. This is the first lender to offer a green mortgage when the product was launched last week.

This product was accused as a marketing gimmick by the founder of, Brendan Burgess. He noted that they can advertise rates fixed rates as low as 2.3%.

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