Emerging mortgage rate war to benefit customers

A “rate war” is heating up as Bank of Ireland has become the latest bank to cut its mortgage rates.

Just days after AIB announced a cut to its standard variable rate, Bank of Ireland’s announcement now means borrowers can fix their mortgage rate at 3% for one, two or five years, regardless of their loan-to-value ratio.

The bank’s one-year fixed rate for first-time buyers has fallen from 3.35% to 3%. This means that, for example, a prospective buyer with loan to value of 90% borrowing €270,000 over 30 years will pay €50 less per month.