Finance Ireland has reduced its long-term fixed mortgage interest rates.

The lender also plans to introduce a new 25 year fixed rate home loan from next week, following on from its announcement of a 20 year fixed rate in May.

Its 10, 15 and 20 year fixed rates will fall between 4 and 15 basis points, depending on the length of the loan and the loan to value ratio.

The new 25 year fixed mortgage will be introduced from Monday, with the rates varying from 2.65% for a loan to value ratio of 50% or less, up to 2.99% for a 90% LTV.

The company is also to offer a €1,500 contribution towards the professional fees incurred by those switching their loan from another provider to a long-term fixed rate product from Finance Ireland.

The move is the latest sign of increasing competition in the mortgage market, particularly when it comes to long-term loans.

Brokers Ireland has welcomed the developments.

"Fixed rates of more than three years are a relatively new phenomenon in Ireland but not across the Eurozone," said Rachel McGovern, Director of Financial Services at Brokers Ireland.

"And while ahead of the Eurozone average there is no doubt that these genuine long-term fixed interest rates, in the case of Finance Ireland now for up to 25 years, offer greater security for mortgage holders and enable them plan better for the future."

Ms McGovern encouraged existing mortgage holders who have not reviewed their situation in some time to consider switching for a better rate or the threat of switching which could prompt a current lender to do better.