Ulster Bank is set to cut its four-year fixed mortgage rate to a market beating 3.29 per cent, in an effort to attract switchers as part of a consumer initiative led by One Big Switch. Eligible customers must have a mortgage that's worth 60 per cent or less of the value of their home to qualify for the deal.

As part of the deal, Ulster Bank will also make a €1,500 contribution towards legal fees as well as free property valuations. Ulster Bank’s best fixed rate at present is 3.65 per cent over three years, while its standard variable rate is 4.3 per cent. Someone with an oustanding mortgage of €250,000 switching from this rate to the new deal could save about €138 a month.

Ulster Bank is also set to cut its three and five year fixed rates.

So far some 9,000 customers have signed up to the deal, which also applies to existing Ulster Bank customers, and One Big Switch co-founder Oliver Tattan said that the offer "is a big win for people power, and a big win for consumers, who desperately need a more vibrant and competitive mortgage market. Having over €1 billion worth of buying power meant the campaign could shake up the mortgage industry, and make a real difference to the level of competition in the Irish market".

The offer will run until May 20th but only applies to potential customers with loans to value (LTV) of 60 per cent or less - ie their outstanding mortgage represents just 60 per cent of the sale price of the property.

Over 90,000 Irish households have already used the power of One Big Switch to unlock discounts on energy, health insurance, and broadband.