But ICS remains expensive compared with its rivals in the market despite the reductions.
It also charges existing customers more than new ones.
ICS Mortgages, the trading name of Dilosk, said it was cutting its rates by up to 0.15 percentage points. The reductions are across fixed mortgage rates for both new and existing owner-occupier mortgages.
Today’s News in 90 Seconds – June 24th
The new rates are available from July 4, and applicable to three- and five-year fixed rates.
It said its latest rate changes reflected ICS Mortgages’ commitment to supporting customers and would form part of its broader strategy to continue to offer flexible, transparent and customer-focused mortgage solutions.
For new customers, the reductions apply across loan-to-value bands.
The new three-year fixed rates will start from 3.85pc, and the new five-year fixed rates will start from 4.15pc.
Existing ICS variable-rate customers will be able to get a three-year rate from 4.1pc from next month.
A five-year fixed rate will be available from 4.25pc for existing customers.
Ray McMahon, chief commercial officer at ICS Mortgages, said: “We are pleased to introduce these rate reductions as part of our ongoing efforts to deliver value and support to our customers. At ICS Mortgages, our mortgages remain innovative and responsive to our customers needs.”
There will be no changes to interest rates for former Ulster Bank Flexible Mortgage customers who migrated to Dilosk DAC.
Mortgage broker Michael Dowling, of Dowling Financial in Dublin, said the reductions were welcome.
However, he said: “These rates are still expensive compared to their competitors. The market would on average be anything from 0.5 percentage points to 0.85 points cheaper for a range of fixed options.”
He also noted that ICS Mortgages is charging higher rates for existing customers.
Mr Dowling said this was a practice long stopped by its competitors.
The ICS move comes after the European Central Bank (ECB) has cut its key lending rates for the eighth time since last summer.
The rate from which tracker mortgages are priced is down to 2.15pc.
It was last at this rate in late 2022, and rose to as high as 4.5pc at the end of 2023.
About 130,000 holders of tracker mortgages, whose repayments are directly linked to the ECB’s main rate, stand to benefit immediately from the announcement.
Most Irish mortgage holders are on fixed or variable rates, however, and will await to see if their lenders pass on the reduction.
More ECB cuts have been thrown into doubt by fluctuations in oil prices and the euro currency.
Energy prices have jumped after Israel launched attacks on Iran.
Governing Council member Francois Villeroy de Galhau, of France, said recent oil volatility could affect ECB rate cuts.
While ECB officials have indicated that inflation is now largely contained, a sustained hike in oil prices as a result of the conflict in the Middle East would potentially push prices up across a range of sectors.
If inflation was to reignite, pressure would rise on the ECB to start hiking rates again in order to try to cool prices, which would be bad news for borrowers.
