Boost for homeowners with rate cut

HUNDREDS of thousands of houseowners have received welcome respite after a surprise cut to interest rates that will ease the cost of tracker mortgages.

But many others on variable rate mortgages seem unlikely to benefit, despite the Government and the financial regulator urging banks and building societies to lessen their burden.

Yesterday’s cut of 0.25%, announced by the ECB, will mean a monthly reduction of about €13 for every €100,000 borrowed. That comes to a saving of almost €500 for a household on a €300,000 mortgage over a year.