Irish mortgage rates rise for third month in a row

Michael Bolton

Irish mortgages rates have increased for the third year in a row, with mortgage rates now at their highest for seven years.

Figures from the Central Bank show Ireland had an average interest rate of 4.31 per cent in March the sixth highest rates in the Eurozone.

The Eurozone average fell for the fourth month in a row to 3.84 per cent. This means that the gap between Irish and Eurozone rates is now at its widest level since July 2022.

Rates varied hugely across the currency bloc from as low as 1.96 per cent in Malta to as high as 6.16 per cent in Latvia.

Speaking on the figures, Daragh Cassidy, Head of communications at Bonkers.ie said: "While PTSB cut its four-year fixed rate for the second time since December. And Bank of Ireland has introduced a new, flat variable rate of 4.15 per cent for all customers regardless of the loan-to-value ratio whereas previously it was as high as 4.75 per cent in some cases.

"These lower rates should feed through into the figures over the coming weeks. Avant Money has also cut its rates however the lender isn’t included by the Central Bank in the data at present.

"How aggressively the ECB cuts rates will depend on how fast inflation falls. We’ve seen interest rate cut expectations scaled back quite dramatically in the US and Australia for example."

Rachel McGovern, Director of Financial Services at Brokers Ireland said: “In a few months we’ve gone from a largely negative scenario of increasing interest rates to one with more optimism.

“It’s anticipated that the ECB will move to reduce its rate in June, perhaps by 0.25 per cent, and the fuller involvement off Bankinter/Avant Money and also new lenders NUA Money and MoCo in the Irish market marks an improvement in competition which has been lacking and augurs well for the year ahead,

“What consumers should note here is that a soon as there was a whiff of interest rates rising the best of these products were pulled from the market. Mortgage holders need to be aware that lenders are money making enterprises.

“More competition, along with impartial advice is critical in terms of making the crucial decision as to what mortgage and what term to go for.”