Mortgage rates at lowest level in three years

Ottoline Spearman

Mortgage rates are at their lowest level in three years, according to data from the Central Bank of Ireland released on Wednesday.

The average mortgage rate for the month was 3.50 per cent, down from 3.53 per cent in November and 3.80 per cent a year ago.

The Eurozone average was 3.32 per cent. This leaves mortgage rates at their lowest level since February 2023 and the sixth highest in the Eurozone.

Rates vary widely across the currency bloc, from as low as 1.98 per cent in Malta to as high as 3.74 per cent in Germany.

You don’t have to have a current account or any type of prior relationship with a lender in order to apply for a mortgage with them - bonkers.ie

Wide variations also exist within Ireland. An analysis by comparison site bonkers.ie shows that for the average first-time buyer borrowing €300,000 with a 10 per cent deposit, variable rates range from 3.35 per cent to 4.70 per cent. Rates for a three-year fixed mortgage range from 3.20 per cent to 4.85 per cent.

Bonkers.ie is reminding prospective first-time buyers and switchers of the importance of shopping around when applying for a mortgage.

Daragh Cassidy, head of communications at bonkers.ie said: “It’s worth remembering that banks here don’t charge fees or commissions for issuing a mortgage, unlike in many other countries where arrangement fees of €1,000 or more can be common. So this makes Irish mortgages a tiny bit more competitive than headline rates alone might suggest.

“Looking forward, the [European Central Bank] ECB could end up keeping rates on hold for all of 2026. So I don't think mortgage rates will change much more over the coming months. However, Revolut is expected to enter the Irish mortgage market later this year, so depending on how competitive its offering is, that could push rates down a bit.

“I’d really encourage consumers to compare the market and shop around when applying for a mortgage - either as a first-time buyer or switcher. A good broker will help you find the best rates for your particular circumstances.

“And remember, you don’t have to have a current account or any type of prior relationship with a lender in order to apply for a mortgage with them. So don’t just “go with what you know”.