Bank of Ireland announces cuts to fixed mortgage rates

Figures from the Central Bank show that Irish rates are much still higher than the eurozone average

Bank of Ireland announces cuts to fixed mortgage rates

Bank of Ireland, College Green, Dublin

Bank of Ireland has today announced fixed mortgage rate cuts of up to 0.35%, available to both new and existing customers.

This announcement comes after the Central Bank revealed earlier today that Irish customers are still paying more than their counterparts in Europe. Irish customers pay an average of 3.76% - this compares with a eurozone average of only 1.99%. Rates in Ireland have fallen, down from 4.2% in the last quarter of 2014.

The Central Bank has also found that more consumers are opting for fixed rates, with a 50/50 split in the overall market, this compares to a 61% preference for variable rates one year earlier.

Bank of Ireland says that seven in 10 new owner occupier customers are now choosing fixed rates.

"This change reflects consumers’ preference for cheaper fixed rate products currently on offer," the Central Bank said.

John O’Beirne, Head of Mortgages, Bank of Ireland, commented on the rate cut: "Fixed rates provide monthly certainty and longer term stability for purchasers and homeowners letting them lock into a fixed rate for a period from one to ten years of their choosing.

"Our fixed rate options include a number of flexible features. Bank of Ireland allows customers to choose a mix of fixed and variable rates to balance flexibility with certainty. Customers can also carry their fixed rate to their new mortgage when they move home."