Noonan expected to announce rate cuts or new mortgage deals from banks

Noonan expected to announce rate cuts or new mortgage deals from banks

The Minister for Finance Michael Noonan is expected to publish a report this afternoon which will say lenders have agreed to cut their variable rates for mortgages, or offer their customers new fixed-rate deals.

The Irish Independent reports that the ultimate aim is get all borrowers on interest rates of below 4%, with the new measures expected to be in place by July.

Today's announcement follows a series of meetings between Michael Noonan and the heads of the Irish banks on the variable rates being paid by 300,000 mortgage holders.

As it stands, Irish borrowers are charged up to €350 per month more in interest rates than the EU average, with our lenders reluctant to pass on rate cuts from the ECB.

Markets editor with the Sunday Business Post Ian Guider said the rate cut was likely to be a quarter of one percent initially, with another before the end of the year.

"I'm being told is that (Michael Noonan) will come out and hammer the banks and say it isn't a matter of whether they are cutting, but by how much they are cutting by," he said, adding it was also understood the first cuts would take effect in July or August.

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