Mortgage holders advised to shop around as price war on way

Mortgage holders are being told there is a price war on the way that could dramatically cut their costs.

AIB is dropping its variable rates by 0.25%.

That could amount to a €500 reduction in annual payments according to the reports.

Many other lenders are expected to follow suit.

But Aine Carroll from the Competition and Consumer Protection Commission, has said customers still need to check the fine print.

"You've a lot of costs in terms of buying your new home," she said.

"Somebody offering you €2,000 or €3,000 or a percentage of your mortgage back as cash is really attractive but, if you're looking at a mortgage that has a special offer, compare it to everything else that is a available on the market.

"Make sure the rate you're getting is good and you're not just taking it out because of the cash back offer."