Mortgage rates in Ireland fell in April due to a price war among lenders, with the average rate on new mortgages now at 4.24%, down from March’s 4.31%, according to the Central Bank of Ireland. Despite the decrease, Ireland still has the seventh highest rates in the Eurozone, where the average is 3.81%.
Rates vary significantly across the Eurozone, from 2% in Malta to 6.23% in Latvia. Recently, the European Central Bank (ECB) cut its main interest rate, benefiting 180,000 tracker mortgage holders. In response, Finance Ireland and ICS/Dilosk lowered their variable rates, but these lenders previously had rates as high as 7.15%.
Several other banks, including AIB, Haven, and Bank of Ireland, have also reduced their rates. Daragh Cassidy of Bonkers.ie expects mortgage rates to continue falling. He notes that first-time buyers can now secure fixed rates under 4% with some lenders.
However, Cassidy warns that 70,000 homeowners with expiring fixed rates should prepare for higher repayments, as their current rates of 2-3% will likely rise. Future ECB rate cuts will depend on inflation trends, with more reductions expected if inflation continues to fall.