Bank Of Ireland Agrees To Pass On Savings

The Bank of Ireland has confirmed it will pass on its savings from Wednesday's interest rate cut to its mortgage customers.

The cuts will apply to standard variable rate and tracker rate mortgage customers. The new standard variable rate will be effective from Monday, November 3.

The European Central Bank announced the cut of half of a percentage point on Thursday as part of a co-ordinated move by central banks across the world.

Following the interest rate drop, there were calls for banks to pass on the savings they would make, which had been estimated at €1.3 million per year.

Welcoming the cut, TD Leo Varadkar, Fine Gael Enterprise Spokesman, said the interest rate reduction would provide much needed relief for hard pressed homeowners, but added it was essential the new rate was passed on to homeowners as soon as possible as those with an average €200,000 variable rate mortgage would benefit by €105 per month.

"With increasing job uncertainty, growing unemployment, and rising house repossessions, banks must not be allowed to engage in their traditional tactics of maintaining higher interest rates. Furthermore, the rate cut must be passed on in full," the minister said.

AIB and Halifax have already announced that they will pass on the full reduction to their customers, however, National Irish Bank, Bank of Ireland, Permanent TSB, Ulster Bank and IIB say they are "reviewing" the situation.

(DW/KMcA)