Boost for homeowners as more banks cut rates

THE cost of home loans has fallen sharply after two of the country's biggest mortgage lenders cut their variable rate.

Bank of Ireland and First Active yesterday cut rates by 0.5%. The move will reduce payments on a €200,000 loan by 54 a month.

This brings to three the number of banks which have cut their rates in response to last week's rate cut by the European Central Bank. IIB Homeloans cut its rate by 0.5% last Thursday.