Irish mortgage rates among the lowest in the EU - Drivetime

Image audioIrish mortgage rates among the lowest in the EU - Drivetime

Mortgage rates have fallen to their lowest levels in Ireland in recent years, according to the Central Bank of Ireland. 

Daragh Cassidy, Head of Communications at bonkers.ie, appeared on Drivetime to discuss the reasons behind our low mortgage rates and why people should consider switching mortgage rates.

Listen back to the interview by clicking the play button above, or take a look at the main points discussed below.

Main points from the interview

  • For many years, our mortgage rates were one of the highest in Europe, but now home loan rates in Ireland are the eighth lowest in the Eurozone.  
  • However, the reason we have some of the lower rates is more to do with banks in other EU countries increasing their mortgage rates. Whereas lenders here have been slow to pass on the recent European Central Bank interest rate increases.
  • The average rate here is 2.58%, which is the lowest level in years. This compares to a Eurozone average of 2.4%.
  • The Eurozone average has actually doubled in the space of the past seven or eight months.
  • Whether you should switch will depend on what type of rate you’re on. 
  • If you’re on a tracker and you’re paying a margin of around 1%, you’re likely better off sticking to the tracker instead of switching to a fixed rate. If you’re paying a margin above 1%, you may want to consider switching to a lower fixed rate. However, you should get financial advice before making a decision. 
  • Variable-rate customers and fixed-rate customers who are near the end of their terms should look at what options are available.
  • You don’t have to switch lenders. You can always ring your current lender and see what options are available to you.
  • There are fees to pay for switching and it can take up to 6-8 weeks, so customers should be aware of this. 

Compare mortgage rates on bonkers.ie

With mortgage rates on the rise, switching to a new rate could save you thousands over the term of your mortgage.

Our free mortgage comparison tool lets you review the lowest rates available from Ireland's main lenders in seconds.

Our other comparison services can also help you lower your energy, broadband, banking, and insurance bills.

Take a look at our mortgage guides

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