ECB rates reduced to 1%
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 mortgage holders will not benefit during their fixed rate period but will hopefully follow on to cheaper rates in due course. We understand that the following 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)
Permanent tsb -expected 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%