Irish mortgage holders can look forward to a significant reduction in monthly repayments, following the rate cut by the European Central Bank (ECB). A spokesman for EBS, which has not moved on August's rate cut yet, said the building society would be reviewing the situation again. Irish Permanent, National Irish Bank and Ulster Bank also said they would be reviewing the implications of the ECB decision.

Yesterday three financial institutions announced reductions in their fixed and variable rates stemming from the August interest rate cut. AIB, Bank of Ireland and ICS have reduced their fixed and variable mortgage rates. These initial reductions, which are now being applied by most lenders, amount to a monthly saving of around £14 (€17.78) for those with a £100,000 mortgage over 20 years. Assuming the latest ECB cut in rates is passed on, the monthly saving will rise to £43 on a £100,000 mortgage and £63 on a £150,000 mortgage.