Will mortgage rates increase in Ireland? - KFM

Image audioWill mortgage rates increase in Ireland? - KFM

Irish mortgage rates fell to their lowest level in years, according to new figures from the Central Bank of Ireland. This is in contrast to the rest of the Eurozone where rates have increased dramatically in the last six months. 

Daragh Cassidy, Head of Communications at bonkers.ie, appeared on KFM to discuss what’s in store for mortgage holders and what’s happening with the energy crisis.

Listen back to the interview above or check out the main points discussed below.

Main points from the interview

  • Ireland had among the highest mortgage rates in the Eurozone for a long time. Over the past few months, there’s been an unusual situation, where lenders across Europe have pushed their rates up in response to increases from the European Central Bank (ECB).
  • The main lenders in Ireland actually haven’t, which is welcome and means Ireland now has the eighth lowest rates.
  • This won’t last and we’ll see more lenders announce rate increases.
  • The ECB has increased interest rates by 2%, and it will likely increase rates again in December and again early next year. 
  • Variable rate customers who may be paying 3.2-4% on their mortgage may want to consider switching and locking into a long-term fixed rate. 
  • If you’re on a tracker mortgage, you should get some good financial advice.
  • At the moment, the Eurozone average is 2.4%, which we’re quite close to at 2.58%.
  • France has the cheapest mortgage rates at 1.7% on average, while Malta is not far behind. 
  • This time last year it was possible to get mortgage rates below 1% in Finland and Portugal. 
  • In terms of energy, we’d always advise people to switch if they’re out of contract. You could save around 10% on your annual energy bills, which equates to around €300 - €400 on average.
  • People are now beginning to see winter bills come in and will notice the price increases.
  • Check out also easy ways you can cut your energy consumption at home as well.

Find the best mortgage rate for you

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

At bonkers.ie, our free mortgage comparison tool makes it easy for you to 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.

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