Cost of borrowing set to hit 1% low

THE cost of borrowing is expected to be cut to a record low today, resulting in further savings for home owners.

The European Central Bank (ECB) is widely tipped to announce its sixth rate drop since last summer, bringing rates to just 1%, from 4.25% in July last year.

Mortgage repayments on a e300,000 home loan will drop by €80 per month, bringing to e550 the monthly savings since September when the bank began its raft of cuts.