Bank of Ireland cuts fixed home mortgage rates by 0.5%

Bank of Ireland said it is cutting all of its fixed-mortgage rates by 0.5 of a percentage point on Tuesday, in a move that will see it almost match rival AIB with the best rate on offer for homes with a high energy-efficiency rating.
The move sees its four-year fixed rate for an owner-occupier property with a Building Energy Rating (BER) of A fall to 3.1 per cent. AIB set its lowest rate at 3 per cent last month for three-year fixed mortgages where the building has an A rating.
The new four-year rate for Bank of Ireland mortgages where the property is BER exempt is 3.45 per cent. The highest new owner-occupier rate is 4.55 per cent for a 10-year fixed period where the home is BER exempt.
The move comes as economists and the short-term debt markets widely expect the European Central Bank (ECB) to cut official rates next month for a fourth time since early June as inflation appears to have fallen under control. Analysts have begun to lower their 2025 earnings forecasts for banks in recent times as interest rates fall at a faster pace than had been expected earlier this year.
“Offering value to our customers is important, so this 0.5 per cent cut is being applied to our full suite of fixed rate products,” said Alan Hartley, director of homebuying at Bank of Ireland. “These reduced rates are available to all new and existing customers from today and they apply all the way up and down the BER scale, not just to those homes with the best energy ratings.”
Bank of Ireland has also tweaked its deposit offering, introducing a new 18-month so-called advantage fixed term deposit account with an annual equivalent rate (AER) of 2.98 per cent. However, it is removing its 24-year fixed-term offering with an AER of 2.96 per cent.
Still, Irish banks continue to secure about 90 per cent of their deposit funding from current and non-term accounts that offer little or no interest.
Bank of Ireland moved in April to rework its fixed-rate green mortgage range to offer customers discounts for homes with energy-efficiency ratings of A right down to G.
The new so-called EcoSaver mortgage replaced the bank’s current green mortgage offering effective for new business or existing customers who move to the new product from another one with the bank.