The reduction will be available to new and existing customers

Bank of Ireland is cutting its fixed rate homeloans.

The bank is shaving 0.3% off all of its fixed rate offers from one to ten years, and says the offer is available to both existing and new customers.

The bank has yet to respond to government pressure to reduce its variable rate mortgages.

But it says its new lower fixed rates are available to existing customers who wish to switch to a fixed rate.

At the end of 2014, fixed rate mortgages accounted for 9% of Bank of Ireland's outstanding mortgage balances.

While in the first quarter of 2015, the bank says some 50% of their new mortgage customers had chosen a fixed rate.

Aine McCleary, head of mortgages of Bank of Ireland, said: "This is the second mortgage rate cut from Bank of Ireland this year. In January we communicated with our variable rate customers advising them of our new rate offers, and we will be doing so again".

"Our €2bn mortgage fund that we launched last year is now fully subscribed and earlier this year we launched a further €2.5bn fund to meet customer demand for new mortgages," she added.