Fixing is a big call for homeowners
Published 30/05/2015 | 02:30
Has Bank of Ireland boss Richie Boucher done enough to get the Government off his back on expensive mortgage rates?
On the surface, the bank has delivered on the commitment it made to Finance Minister Michael Noonan by cutting its fixed rates.
But the bank continues to resist attempts to get it to reduce its variable rate, which is one of the highest in the market.
Anyone considering opting for one of the reduced fixed rates, which are now available to existing as well as new customers, needs to think long and hard.
Many experts expect the bank to reduce its variable rate of 4.5pc. Goodbody Stockbrokers sees it coming down to 4pc, with the reduction paid for by the bank offering lower deposit rates.
And the bank's new fixed rates are high by comparison with other lenders, even after being reduced.
Fixing your mortgage is a big call, as opting out of a fixed rate will mean you incur financial penalties.