Bank of Ireland reduces fixed rate mortgage offering to 3%

Bank of Ireland has reduced its fixed rate mortgage offering, it has been announced.

The interest rate for its range of one to five year fixed rate mortgages is now 3%, irrespective of loan to value ratio.

The interest rate for the bank's 10-year fixed product has also been reduced to 3.3% for loans up to 80% of the property value and to 3.5% for loans above 80% loan to value.

Graphic showing the mortgage changes.

A statement from Bank of Ireland said the new rates started from Tuesday, November 2.

The news comes after AIB cut its standard variable rate to 3.15% in a move that was announced on Wednesday.

Price comparison site Bonkers.ie welcomed the news.

"Bank of Ireland’s mortgage rate cuts are good news for Irish borrowers, who have been paying more than their European counterparts for some time," said Head of Communications, Mark Whelan.

"Bank of Ireland’s fixed rates will be among the most competitive in the Irish market and are likely to be popular among borrowers who favour peace of mind and certainty over their mortgage repayments.

"There have now been four mortgage rate cuts announced since late September, meaning that there is finally some healthy competition entering the Irish mortgage market, which is good news for borrowers.

"All eyes will now be on other banks to see how they react to the emerging mortgage rate war."

The news follows calls from the Housing Finance Agency for the Government to consider funding an SSIA-type mortgage savings scheme to help young and low-income buyers get on the property ladder.

Housing Finance Agency chairwoman Michelle Norris said other European countries have successfully used such special top-up saving schemes to fund private and public housing needs.


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