Non-bank lender Finance Ireland is reducing the interest rates it charges for three and five-year fixed rate mortgages.
The company is cutting the entire suite of three and five year fixed rate products by 0.45%.
The new lower rates will apply to drawdowns taking place on or after Thursday 22nd February.
Finance Ireland said the move was coming in response to lower market funding rates in recent weeks.
It represents the first time that Finance Ireland has cut rates since July of 2022 when the ECB started its current cycle of monetary policy tightening.
Non-bank lenders, like Finance Ireland, are more exposed to the effects of rising rates on wholesale and bond markets as they source all their funding from there because they don't have deposits to lend out, unlike the main banks.
This situation led Finance Ireland to have to raise its borrowing rates over the past 18 months as its own cost of funding jumped.
"The mortgage rate cuts we’re announcing today show our commitment to giving customers the benefit of lower market funding rates and enhanced competition in the market," said a spokesman.
"Irish consumers need more competition and choice and we’ll continue to keep our rates under review to make our offering as competitive and as attractive as possible."
The development will bring rates down to 5.55% on a five year fixed loan with a loan to value ratio of 60% or less, while the lowest three year fixed mortgage rate will be 5.75% for a 60% or less LTV.
The lender also said it is launching a new 7-year fixed rate product from February 22nd, with rates starting at 5.35% for customers with a Loan to Value (LTV) of less than 60%.
