Minister for Finance Michael Noonan has offered some advice to mortgage holders following the publication of a Central Bank report showing savings can be made by switching lenders.

Mr Noonan said mortgage holders should find out if they could avail of improved terms.

“What I would advise people with mortgages to do is to engage with their lender and examine all the options and see is there an option that significantly reduces their repayments.”

He said the Central Bank’s “useful” report was welcome, but pointed out work on the report had commenced before he began his round of discussions with the banks.

“While they have given advice on switching, the advice is for switching from variable rates to variable rates, whereas a lot of the options now would give a much bigger saving if people were to move from variable rates to fixed in another institution.”

He said there were quite significant savings to be made.

Mr Noonan said he thought it was quite clear the bottom of the interest rate cycle was approaching.

“It’s bottoming out and if one is thinking of fixing well obviously you’re better off fixing as near to the bottom as you can get, rather than when interest rates go back up again.”

Mr Noonan said he would meet the banks again in September. He said there was still an argument to be made that the variable rates were too high.

From the banks’ point of view, they could fund fixed rates cheaper and give better value to consumers, he said.

“So again I’d repeat my advice. Engage with your lender if you have a mortgage and see what the range of options are,” he said.

“And if there’s a range of option that gives you a cheaper mortgage go for it, and if there isn’t look at the next lender and see can you switch, where you will get a significant reduction.”

Mr Noonan was speaking during a break in the National Economic Dialogue at Dublin Castle on Friday.