Building society giant Halifax has announced a welcome boost for first time buyers.

The firm is to pump €100m into funds aimed at helping potential property owners get their feet on 'the ladder'.

Loans fixed at 3.2% are to be offered, and will be guaranteed until the end of May 2011.

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The new product will work solely on a first come, first-served basis, with only 400 mortgages available.

Halifax has touted the rate as the best currently available for a mortgage in Ireland.

Last week, Allied Irish Bank said it would introduce a one-year fixed rate of 3.25%, which is the current European Central Bank rate.

The moves come as many economists expect the ECB to lower rates as far as 2% next year.

(PR/KMcA)