BoI cuts cost of fixed-rate mortgages only

Bank of Ireland has taken its first step to comply with Government demands to lower mortgage rates — by cutting a range of fixed-term home loan rates only, but experts say that the Irish lenders continue to charge among the priciest variable rates in Europe.

The lender yesterday announced cuts of up to 0.30% across its fixed-rate home loans, saying that the new suite of rates would be available to both existing and new customers.

That was a key commitment sought by Minister for Finance Michael Noonan when he called in the heads of the banks over a week ago to put pressure on the lenders to reduce their home loan rates.