Bank of Ireland yesterday cut its fixed mortgage rates, and said it was simplifying its variable rate structure. The one year fixed rate was now 4.4 per cent, the bank said, down from 4.5 per cent. A five-year fixed mortgage cost 4.75 per cent for the first year and 5 per cent for the remaining years.

Bank of Ireland also said it was now offering customers just one variable rate, regardless of whether they borrowed more or less than 80 per cent of the property's value. The bank said the rate, effective from close of business yesterday, would be 5.24 per cent. This compares to the European Central Bank's key rate of 2.5 per cent.