Bank of Ireland's new mortgage package designed to turn a house into a home

One-step approval for mortgage and a range of personal lending options is the key feature of Bank of Ireland's new mortgage package for first time buyers and those trading up, details of which were launched today (Monday 22nd September). Both first time buyers and trading up buyers that qualify for the new package can now avail of a pre-approved personal loan with up to 5 years to repay, a pre-approved overdraft and a pre-approved Gold Advantage credit card with up to 56 days interest free credit. These new features, all of which are optional, are available to customers for up to 3 months from receiving their mortgage cheque, without having to make subsequent applications.

The package also offers flexible repayment options such as deferred start, baby break and skip month(s). It can fast track life, medical and home insurance and offers a dedicated phone line for claims. The package also offers the most competitive one-year fixed rate for first time buyers at 2.69%.

In developing the new package Bank of Ireland commissioned research company, Behaviour & Attitudes to look into the financial health and needs of buyers following the purchase of their first house. The research shows that the cost of furnishing a home is indeed substantial with the average first time buyer quoting in the region of EUR13,000. Over a quarter of respondents borrowed funds to cover these costs, with the balance using a combination of savings and/or small borrowings supplemented with assistance from family members.

40% of those questioned said they had everything they needed moving into their first home whereas 60% had some basics or absolutely nothing and needed to invest in kitting out the house. When asked what 'hard' furnishings the first time buyers deemed essential to make the home comfortable enough to move into, the top three responses were a bed, a cooker and a fridge/freezer. A sign of the times perhaps is that a quarter of respondents indicated that a DVD was an essential item for their new home, and 6% identified a barbeque as a 'must-have'!

The research did highlight a gender difference in the purchasing patterns of first time buyers with the women surveyed tending towards the practical items such as beds, cookers and washing machines and men opting for items such as TVs and DVDs.

Commenting on the new package, Olive Moran, marketing manager with Bank of Ireland Mortgages said:"We are very confident that our new mortgage package will appeal to many first time and trading up buyers. This view is backed up by the independent research and also by anecdotal evidence from our customers. The package gives borrowers the financial flexibility to put their own personal mark on their homes whether through re-decorating or purchasing furnishings and fittings. We all recognise what a big deal your first home is and I?m pleased that Bank of Ireland can offer the necessary financial options at a time when there are many financial demands on our customers."

The package will not appeal to everyone however, as Olive Moran explains:"Some of our customers wish to keep their borrowings to an absolute minimum, even in the current low interest environment, and they will not want to avail of these options. There are also people who unfortunately won't meet the strict lending criteria laid down by the Bank. As always Bank of Ireland will adhere to its prudent lending policy and will ensure that any lending approved is within its customer's personal financial comfort zone."

Although house buyers can be pre-approved for the loan, the overdraft and the credit card in one step, Bank of Ireland states that there is absolutely no obligation on the part of customers to put themselves forward for approval nor to avail of the facilities should they be approved.

The research also questioned respondents on their lifestyle and whether they expected it to change as a result of their new status as homeowners. When asked what activities they would curtail in year one, the majority of respondents listed foreign holidays, eating out and weekends away. Three in ten said that they would 'cut back' on going to the pub. Activities that respondents thought they would participate more in now that they are homeowners included entertaining at home, having a drink at home and buying take-away foods.

ENDS

22nd September 2002

For reference:
Olive Moran
Marketing Manager
Bank of Ireland Group Mortgages
Tel: (01) 611 3525
Mobile: 086 6622333

Anne Mathews
Media Relations Manager
Group Corporate Communications
Tel: (01) 604 3836
Mobile: 087 246 0358