Bank of Ireland announces cuts to fixed mortgage rates available to both new and existing customers

  • Reflecting the reduced cost of term debt to Bank of Ireland, our second rate cut this year offers fixed rates from 3.60%
  • A cut of 0.30% to the only ten-year fixed rate in the market
  • New fixed rates available to all existing customers with a variable rate mortgage
  • 50% of new mortgage customers now choosing fixed rates

Bank of Ireland has today announced cuts of up to 0.30% in fixed mortgage interest rates available to both new and existing customers, reflecting the reduced cost of term debt to Bank of Ireland. Today’s announcement confirms Bank of Ireland’s competitive offering in the market starting from 3.60%. All fixed rate offers from 1 to 5 years are between 3.60% and 3.95%, and for every variable rate customer there is a competitive fixed rate which could save them money.

Existing customers on variable rates, or coming to the end of their current fixed rate period, can apply for the Bank’s two, three, five and ten-year fixed rate options. Bank of Ireland is also cutting its 10 year fixed rate by 0.30% – this is the only 10 year fixed rate in the Irish market.

Fixed rate mortgages give certainty to both the customer and the Bank at a time when interest rates are at historic lows. Existing variable rate customers have the option to move to a fixed rate, specific to their Loan to Value (LTV) band, on the provision of an up to date valuation of their home, or to fix just a portion of their mortgage. This means that existing customers can avail of very competitive two or three-year fixed rates of 3.60% where the Loan to Value is less than 80%. At the end of the fixed rate period, customers can choose either a further fixed rate, or move to the prevailing variable rate.

Aine McCleary, Head of Mortgages of Bank of Ireland, commented:

“At the end of 2014 fixed rate mortgages accounted for 9% of Bank of Ireland’s outstanding mortgage balances. However, in the first quarter of 2015 alone, approximately 50% of our new mortgage customers have chosen a fixed rate. This shows how more and more customers are choosing the certainty and stability of fixed repayments, especially in the current low interest rate environment.

“This is the second mortgage rate cut from Bank of Ireland this year. In January we communicated with our variable rate customers advising them of our new rate offers, and we will be doing so again.

“We are building on the significant momentum underway in meeting the needs of Bank of Ireland’s existing and new mortgage customers. Our €2 billion mortgage fund that we launched last year is now fully subscribed and earlier this year we launched a further €2.5 billion fund to meet customer demand for new mortgages.”

Other features of Bank of Ireland’s mortgage proposition for new customers that set it apart from competitors include formal mortgage approval (not just approval in principle) in 24 hours, mortgage approval that lasts for 12 months, 1% of the mortgage amount paid to assist customers with their stamp duty, 250 branches countrywide staffed by professionally qualified mortgage advisers, mobile mortgage managers who can meet customers anywhere and anytime – including at weekends – and ‘House-Hunter’ mortgage approval that lets customers search for their new home knowing their finance is in place.


Details of Reduced Fixed Rates:

Rate tables were previously displayed in two LTV bands (LTV <= 75% and LTV >75%). The below table shows rates across three LTV bands (LTV <=60%, LTV 61%-80% and LTV >80%).

Available to New CustomersNew RateDown


1 Year Fixed LTV <=60% 3.60% – 0.10%
1 Year Fixed LTV 61%-80% 3.60%
1 Year Fixed LTV >80% 3.70% – 0.10%
 Available to New and Existing Customers
2 Year Fixed LTV <=60% 3.60% – 0.20%
2 Year Fixed LTV 61%-80% 3.60%
2 Year Fixed LTV >80% 3.75% – 0.25%
3 Year Fixed LTV <=60% 3.60% – 0.25%
3 Year Fixed LTV 61%-80% 3.60%
3 Year Fixed LTV >80% 3.80% – 0.25%
5 Year Fixed LTV <=60% 3.80% – 0.15%
5 Year Fixed LTV 61%-80% 3.80%
5 Year Fixed LTV >80% 3.95% – 0.20%
10 Year Fixed LTV <=60% 4.20% – 0.30%
10 Year Fixed LTV 61%-80% 4.20%
10 Year Fixed LTV >80% 4.40% – 0.30%

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