Competition heats up as BoI cuts variable mortgage rates

Bank of Ireland have announced it has cut its variable mortgage rate for new customers from 3% to 2.69% for the first 12 months of the loan.

It has also introduced a new six-month discount rate of 2.49%, but has raised its one year fixed rate from 2.59% to 2.75%.

The bank has also introduced a range of "tracker" mortgages for new customers, starting at 2.95%, which matches the best rate of its rival AIB.

The lowest rate will be applicable to customers who borrow over €200,000 but whose loan is less than 60% of the property price.

Rival AIB's qualifying criteria for its lowest rate are easier, with the rate available on all mortgages with a loan-to-value ratio under 60%.

Last week, building society EBS entered the tracker mortgage market, offering a single rate of 3.25% for all customers.