Fresh mortgage rate cuts could be on the horizon, according to reports.
According to The Irish Independent, the European Central Bank is expected to cut its key interest rates soon which would lead to a fall in both tracker and fixed rate mortgages.
Ulster Bank has also cut its variable rate by 0.4% to 3.9% for those whose loan is less than 90% of the property’s value, saving the typical borrower €50 a month.
Experts said this is likely to force other banks to cut variable rates, prompting a renewed mortgage price war.
Founder of the Askaboutmoney.com website Brendan Burgess called on all banks to cut their variable and fixed rates, pointing out that they were about 1% higher than they should be in this country.
“It does look as if the ECB will cut its rates. This means we should no longer be paying some of the highest rates in the eurozone. Rates are about 1pc too high. There is no justification for charging such high rates,” he said.
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