ECB Rate Change

The European Central Bank (ECB) announced its intention to decrease interest rates. If you currently hold a tracker mortgage, your mortgage repayments are linked directly with the ECB rates. Please see answers below to explain this further.

Bank of Ireland Tracker Rate changes

• What is the ECB?

  The European Central Bank (ECB) is the Central Bank responsible for the monetary policy of the Eurozone (the 20 EU countries that use the euro). The ECB’s main task is to maintain price stability in the Eurozone by ensuring inflation (the rate at which the cost of goods and service can go up or down over time) is low and stable.

• Why are they reducing interest rates?

  The ECB is reducing rates to help stabilise inflation.

• Will there be more increases?

  The ECB has indicated that there might be more rate changes. We will always let you know, if a change is coming.

• How does a tracker mortgage work?

  A tracker mortgage follows or ‘tracks’ changes to the ECB rate. If the ECB increases its rate by 0.5%, tracker mortgage rates will go up by 0.5%. If the ECB cuts its rate by 0.5%, tracker mortgage rates will fall by 0.5%.

• Why is my mortgage repayment reducing?

  The ECB has reduced its rates so your tracker mortgage rate is reducing by the same percentage.

• How do I know if I pay my mortgage by standing order or direct debit?

  Check your bank statement. If you see DD next to your mortgage repayment, you pay by direct debit. If you see SO, you pay by standing order.

• I pay my mortgage by direct debit. What do I need to do?

  The direct debit for your mortgage will automatically change, so you don’t have to do anything.

• I pay by standing order. How do I change my standing order?

  To change your Bank of Ireland standing order, log in to your banking app (for the account you pay your mortgage from) and change your standing order amount there.

• How do I switch to paying by direct debit?

  If you change how you pay your mortgage from a standing order to a direct debit, your mortgage payment will automatically change so you don’t have to remember to change it yourself. You can set up a direct debit by clicking on this link here.

• How do I check my mortgage details?

  Our mortgage viewer lets you check all the important details of your mortgage any time you like. Click here.

• I’m worried about my mortgage repayments going up

  If you’re concerned that your repayments are becoming unmanageable, please talk to us as soon as possible. We will work with you to find a solution so that you can stay on top of your finances. To find out more, please click here.

• What other rate options are there?

  We have a range of competitive variable and fixed rate options including fixed rates between 1 year and 10 years. To find out more please click here.

  If you decide to switch, you will not be able to go back on a tracker interest rate in the future. (subject to the terms and conditions of your offer letter)

• If I chose a variable or fixed rate can I go back to my tracker rate later?

  No, if you switch to an alternative interest rate, you will not be able to go back on a tracker interest rate in the future. (subject to the terms and conditions of your offer letter)

• What if I need some extra help?

  If you have any questions or need more information please let us know. For example, you may need this information in a different format (e.g. audio, braille, large text), you may have been impacted by a recent life event or you may have an accessibility impairment. Our staff have lots of experience serving customers with various needs and we’d be delighted to help you.

• I have an alternative repayment arrangement on my mortgage, will this rate decrease affect my current mortgage arrangement?

  Yes, the tracker rate reduction will be applied to your mortgage.

• I have an alternative repayment arrangement on my mortgage with an agreed repayment amount. Will my repayment reduce because the tracker mortgage rate has gone down?

  The decrease in the tracker mortgage rate will be applied to your mortgage. If you are currently on a fixed repayment arrangement this will not change your monthly repayment amount until the end of your arrangement.

• I have an alternative repayment arrangement and my monthly mortgage repayment has gone up or gone down more than I expected due to the tracker mortgage decrease - why did this happen?

  Your repayment amount may have increased / decreased more than you expected because the rate decrease triggers a mortgage recalculation. With a mortgage recalculation, we work out if your monthly repayments are enough to repay the mortgage balance (what you have left to pay off your mortgage less any arrears as arrears must be paid separately) in full, within the remaining mortgage term.

  If we work out that your repayments are not enough, we will increase your monthly mortgage repayment so it won’t take you longer to pay off your mortgage than your existing term.

  For example, if your mortgage was previously in arrears you will have incurred more interest as your balance will have been higher than expected when compared to an account that did not have arrears. As the balance is now higher than projected at the previous repayment recalculation the new repayment calculated must reflect that higher balance.

  If however, you were in arrears at the previous repayment recalculation (rate change, mortgage term change, repayment date change, lump sum repayment, arrears capitalisation) and have now paid the arrears and have continued paying extra meaning that you have paid more than expected since the last repayment recalculation your repayment may decrease by a greater amount as the balance remaining will now be now be lower than expected.

• My mortgage account is currently in a forbearance arrangement which is due to expire over the next 3-6 months. I previously got a letter telling me my new repayment amount. It is higher than the repayment quoted on this rate change letter, why is this the case?

  The letter we sent you letting you know that your existing arrangement will end in 3-6 months was sent before the tracker rate decrease, the previous rate no longer applies. So, the higher monthly repayment shown on our previous letter was correct at the time but did not reflect the tracker rate decrease.

FAQs for personal insolvency mortgage customers

• I am in a Personal Insolvency Arrangement (PIA), will this rate decrease be applied to my mortgage account?

  Yes, the rate decrease will be applied to your account. If you have any questions about, this please speak to your Personal Insolvency Practitioner (PIP).

Arrears – Interest surcharge

If you do not pay us a repayment instalment or other sum of money by the date you are due to pay it, we may charge you a default interest rate of 0.5% per month or part of a month (which is 6% per year) on the unpaid sum. This default interest is added to normal interest.

We do not charge borrowers default interest when they are in a Mortgage Arrears Resolution Process (MARP) under the Central Bank’s Consumer Protection Code/Code of Conduct on Mortgage Arrears (the Code)*​ and are co-operating reasonably and honestly with us.

*From 24 March 2026 the Code of Conduct on Mortgage Arrears will be part of the Consumer Protection Code 2025. See www.centralbank.ie for details.

Please note: Bank of Ireland is not responsible for information on third party websites.​