KBC Bank Ireland has said it will cut the interest rate on its fixed rate mortgage products.

From next Tuesday, the bank said it will offer lower rates on two, three and five year fixed rates with reductions varying from between 0.2% and 0.35%. 

Customers will be able to get rates as low as 3.1% on a three year fixed product with a loan to value of between 80-90%.

The bank also said that homeowners who make the switch to KBC will benefit from a €3,000 contribution towards their costs of switching their mortgage. 

It said this is open to any customer who switches their mortgage to KBC before September 30 this year.

The bank said that mortgage customers can continue to avail of the 0.2% mortgage rate discount where they hold a current account with KBC and pay their salary into that account.

The mortgage rate cuts from KBC comes after research from the Central Bank into switching behaviour shows just 4% of mortgage customers moved their loan to a new lender, while 6% had changed their product with their existing bank. 

Over eight out of ten have never considered moving their mortgage for one reason or another.