Bank of Ireland said on Monday that it will cut up 0.35 per cent on new fixed rates for both new and existing customers.

The move means that existing variable rate customers, as well as new mortgage customers of the bank, can now lock into fixed year products at reduced rates. However, to benefit from the greatest savings, customers will have to have a loan to value of less than 80 per cent, which means new customers will need a deposit in excess of 20 per cent.

The greatest cut, of 35 basis points, is on the bank’s five-year fixed product, which has fallen to 3.45 per cent for those with a LTV of less than 80 per cent. The best rate on this product for those with LTVs of greater than 80 per cent is 3.75 per cent, down from 3.95 per cent previously.

The lowest rate the bank now offers is 3.35 per cent on its two year fixed rate product, a reduction of 25 basis points. Again, this rate is only available to those with a LTV of less than 80 per cent. For those above this level the rate which will apply is 3.65 per cent, down from 3.75 per cent previously.

Savers on the bank’s existing variable rate APR of 4.5 per cent could save €132 a month by switching to this rate, based on a €200,000 30-year mortgage.

The new fixed rates will be available to all existing and new customers from February 16th.