Two mortgage lenders cut interest rates

Two home loan institutions lowered interest costs tonight ahead of anticipated rate reductions next month by the European Central…

Two home loan institutions lowered interest costs tonight ahead of anticipated rate reductions next month by the European Central Bank.

The Irish Nationwide Building Society and Allied Irish Banks brought down their variable and fixed mortgage rates by between 0.25 per cent and 0.50 per cent.

The Irish Nationwide said the new levels would stay in place whether or not the ECB moved on their rates and the AIB reported that their decision followed recent downward movements in the wholesale cost of funds.

In another move linked to the Irish property market, Sherry FitzGerald, one of the country's biggest estate agents, tonight forecast that its after-tax profits this year would be higher than indicated by previous predictions.

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The company said the combination of stable interest rates, solid underlying demand and the ongoing uncertainty in other investment markets had resulted in "increased transaction activity" in the second hand and new homes markets.

They also reported that demand in the commercial market remained stable and that activity in that sector during the current year would match overall 2001 levels.

Sherry FitzGerald added: "Given these demand patterns and taking into consideration the performance of the residential market, the directors are announcing that in their opinion fee levels and profits after tax for the 12 months to December 2002 will be ahead of market expectations."