Banks - Ulster Bank mortgage rate reduction unlikely to have a material impact

Davy Research
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The reduction in rates for a 90% loan to value (LTV) variable rate mortgage product is unlikely to materially impact upon the market and appears to be a retention measure on the part of Ulster Bank. Given recent moves in the interest rate environment, focus will naturally fall upon mortgage rates and lower rates may create incentives to cut pricing to grow share — yet, uncertainty over capital requirements persist, which are also a critical input into mortgage pricing.