ICS Building Society and Bank of Ireland are the latest financial institutions to cut their fixed interest rate mortgages. Bank of Ireland has cut its one-year fixed rate for new customers to 4.9 per cent while the rate for existing customers has been reduced to 5.85 per cent. The bank has also reduced its two-, three- and five-year rates, with immediate effect.

Meanwhile, the Bank of Ireland-owned ICS has reduced its one-year fixed-rate mortgage for new customers only to 4.95 per cent from 5.65 per cent, also with immediate effect. It has also cut its two-year fixed rate to 5.89 per cent from 6.19 per cent while the three-year rate has been cut to 6.1 per cent from 6.35 per cent. These rates are on offer to new and existing customers.

ICS said the rate reductions were in response to a general decline in the cost of funds. The move follows similar cuts by Irish Permanent, First Active and EBS Building Society.