DUBLIN: Bank of Ireland has cut its mortgage rates as banks scramble to benefit from the rising mortgage market. It is the fourth bank in two months to cut rates. But the banks are only cutting fixed rates as they do not want borrowers switching lenders to get better rates.
Bank of Ireland has cut its fixed rates by up to 0.35pc in a move that will mean big savings for new and existing customers. The reductions will mean savings of €430 a year for someone who has a mortgage of €270,000 and fixes for three years. The bank has reduced its one, two and three-year fixed rates for both new and existing borrowers. New borrowers with large deposits, and existing mortgage holders with large amounts of equity in their homes, will qualify for the lowest interest rates. This is because the bank is offering fixed rates with the interest rates determined by the loan to value (LTV).
Existing Bank of Ireland mortgage holders who have a loan to value of between 61pc and 80pc will be able to get a two-year fixed rate of 3pc, down from 3.25pc. The five-year LTV rate, for those with an LTV of at least 80pc, comes down by 0.10pc to 3.20pc for existing borrowers. Permanent TSB, KBC Bank and Ulster Bank have all announced cuts to fixed rates in the last two months.
