EBS Building Society said today it will scrap discounts to new home buyers as part of its commitment to retaining mutual status and announced a new mortgage rate it claims is the lowest in the market.
At the publication of its annual results today, which show a 15 per cent rise in the society's surplus to €62.6 million, EBS expressed its determination to remain a mutual society - a status it beleives sets it apart from other financial institutions.
EBS chief executive Mr Ted McGovern said the practice of discounting homeloan rates to new business discriminates against existing members as they are effectively being asked to subsidise new business growth.
EBS also announced a 3.25 per cent standard variable mortgage rate (SVR), which it claims is the lowest in the market. The rate will be available to all existing EBS members from March 31st.
EBS's financial results show the society advanced €1.9 billion in homeloans in 2003. Loans residential investments rose by 30 per cent to €263 million and commercial property loans grew 25 per cent to €259 million.
The value of EBS's loan book inclusive of securitised assets of €1.2 billion was €8.5 billion an increase of 21 percent on the year.
The cost income ratio remained at 53.2 per cent.