Good news for mortgage holders in today's announcement of a further reduction in interest rates by .25%.

The reduction is worth approx €15 per month for every €100,000 of borrowings.

The full reduction will be passed on to tracker rate mortgage holders.

Fixed rate mortagge holders will not benefit during their fixed rate period but will hopefully follow on to cheaper rates in due course.

We understand that the follwing changes will be made to variable rate mortgages.

AIB -No reduction( Aib passed on the last .25% in full)

Bank of Ireland .15% ( Did not pass on last rate reduction)

EBS .35%

Haven .35%

Permanent tsb -expcted reduction of .7% subject to clarification

Aib will retain the position as cheapest variable rate provider at present.

We expect more reductions in the new year, possibly bringing base rates down to 1/2%