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Lender says...

Bank of Ireland has reduced its fixed rates. A three-year fixed rate is now available at 6.09 per cent up to a maximum loan-to-value of 75 per cent.

There is an arrangement fee of £999 with an early repayment charge of 3 per cent until 31 July 2011 when the fixed period ends.

However borrowers are able to overpay by up to 10 per cent of the balance outstanding each financial year without incurring early repayment charges.

Also available is a three-year fixed rate up to 95 per cent LTV at a rate of 6.49 per cent. There is a £999 arrangement fee and the same ERCs and overpayment structures apply as to the 75 per cent product.

The fixed rate deal period ends on 31 July 2011 when the rate reverts to Bank of Ireland's standard variable rate, which is currently 7.09 per cent.

Adviser says...

Peter O'Donovan, mortgage adviser for London-based IFA Bestinvest, said the 75 per cent LTV product was slightly out of line with the market.

He said: "At the moment a lot of products are about 0.2 per cent less than this. However the fee is quite good and it does its own underwriting so it can be quite flexible.

"There is not much in the way of 95 per cent products at the moment so it is good to see this is available."

Rating 3/5 stars