The European Central Bank has cut interest rates by a quarter of a percentage point to 2.5%.
This is the second reduction this year and the sixth since last June.
The latest cut will automatically benefit tracker mortgage holders, while it remains to be seen if the savings will be passed on to those on variable rates or new fixed rate customers.
This latest reduction will mean monthly repayments have fallen by close to €100 a month for a typical tracker mortgage customer with €100,000 left to pay since rates peaked in September 2022.
That is based on a borrower with 15 years left to pay and a tracker rate that is one percentage point above the ECB refinancing rate.
The European Central Bank has also hinted that further rate cuts could happen in the coming months.
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