Banks Cut Fixed interest Rates

December 03, 2007

IIB was the third bank to cut its fixed interest rates on mortgages last week while many more may be expected to follow in the coming weeks. This is good news for borrowers as this indicates an expected fall in the European Central Bank rate next year. Earlier last week both Bank of Ireland and Halifax lowered their fixed rates. This is the first time in months that interest rates have decreased.

Fixed rates are generally priced above a banks tracker or variable rates and offer borrowers security in knowing that the rate will not increase over the fixed period. More then a third new mortgages taken out this year were taken on fixed rates as purchasers try to combat the recent increases in the ECB rate.