EBS and Haven announce mortgage interest rate cuts 

EBS will reduce its two-year fixed rate mortgage by 0.5% while Haven will reduce its three-year fixed rate mortgage by 0.5% from Thursday, saving customers more than €1,000 a year

The companies said customers could save more than €1,000 annually with these new rates.

Mortgage providers EBS and Haven have announced rate reductions of up to 0.5% on their fixed-rate mortgages, which will be available for new and existing customers from Thursday.

EBS will reduce its two-year fixed rate mortgage by 0.5% while Haven will reduce its three-year fixed rate mortgage by 0.5%. The new rate for each of these categories will stand at 3.9% and 3.75% respectively.

All other EBS and Haven non-green fixed rates will be reduced by 0.2%. The new rates are available from July 24.

EBS and Haven are both part of the AIB Group. The company said customers could save more than €1,000 annually with these new rates.

The company said the interest rate reductions were in line with the falling interest rate environment.

According to AIB Group, the monthly repayment on a €300,000 EBS two-year fixed-rate mortgage over a 25 year term will now be €1,566.99.

The previous monthly repayment would have been €1,650.52, representing a saving of €83.53 per month, €1,002.36 a year.

A monthly repayment on a new €300,000 Haven three-year non-green fixed rate mortgage over a 25-year term will now be €1,542.39. Previously, the monthly repayment would have been €1,625.21.

Last month, the European Central Bank cut interest rates again by 0.25% for the eighth time in just over a year as it sought to prop up an economy widely exposed to impending tariffs from US president Donald Trump.

This brought the benchmark deposit rate down from 2.25% to 2%.

The cut follows a further easing in inflation, which fell below the ECB's 2% target this week for the first time in eight months.

The Governing Council of the ECB is meeting over the course of Wednesday and Thursday to discuss whether further interest rate cuts are warranted. However, given inflation is remaining steady at about 2%, another rate cut is unlikely.

However, one of the complicating issues for the ECB is the strength of the euro versus the dollar, which is currently trading at close to €1.17 to $1.