BofI and First Active lower mortgage costs

Two more home loan companies tonight trimmed the cost of mortgages by 0.5% in response to last week’s interest rates cut by the European Central Bank.

Bank of Ireland set their new rate at 4.3% and the First Active bank at 4.24%.

It will mean savings of around €54 a month for borrowers with €200,000 loans over 20-year terms.

A Bank of Ireland spokeswoman said of their move: “This will represent a significant benefit to both homeowners and first time buyers and will go a long way to improving mortgage affordability.”

Last week the IIB Homeloans group reduced its rate, also by 0.5%