The State's biggest mortgage lender Irish Permanent has become the latest institution to cut its fixed mortgage rates, following the example set by ACC, TSB and First National Building Society.

Analysts say the falls in fixed rates have been in response to declining bond yields. But while there is still a long way for short-term interest rates to fall before Ireland joins the single currency, longer-term rates may not have much further to go as Irish five and 10-year bond yields are currently trading close to their German equivalents.

However, analysts say that borrowers may be as well to wait a few months and see how things shape up before locking into a three-year or five-year fixed-rate mortgage.