Most lenders confirm they will pass on rate cut

Most Irish mortgage lenders have confirmed that they are going to pass on today's interest rate cut of 25bps to a new low of 1.25 per cent.

All lenders are obliged to pass on rate reductions to tracker mortgage holders although they have discretion with regard to holders of variable rate mortgages.

The State's largest mortgage lender Permanent tsbsaid it will pass on the rate cut to all owner occupiers. However, the new lower rate will not apply to mortgages secures against investment properties or holiday homes.

Permanent tsb has a residential mortgage loan book valued at around €28 billion, of which 25 per cent is for residential investment properties.

Halifaxand Bank of Scotland (Ireland)said it will pass on the rate cut in full to all customers, as did the EBS.

AIBsaid it is also going to pass on the full reduction to owner occupiers but has yet to make a decision with regard to buy-to-let or other forms of investment properties.

Bank of Irelandand ICS Building Societysaid they will pass on the full ECB rate decrease across Tracker, Standard Variable Rate and Variable LTV based mortgage products.