Mortgage rates reach lowest level since May 2023 as lenders make cuts

The average interest rate on new Irish mortgages fell to 3.97 per cent in November, the lowest since May 2023. The latest figures released by the Central Bank came as PTSB announced it would cut its fixed mortgage rates.PTSB is introducing significant cuts of between 0.15 and 0.95 per cent across its range of fixed-rate products. It is likely that other lenders will now follow suit in the coming weeks.

Trevor Grant, chairperson of Irish Mortgage Advisors, said the fall in the average interest rate on new mortgages is a trend that should continue this year. “Markets are forecasting another four ECB [European Central Bank] cuts this year – with most of them expected in the first six months of 2025. This could see the average interest rate on new mortgages drop substantially in the coming months,” he said.

“In time, falling ECB rates should make their way to variable and fixed rate mortgage customers. The recent fixed rate mortgage cuts announced by a number of banks is evidence that this is already happening.
“Indeed, we could see multiple fixed and variable mortgage rate cuts this year. Homeowners and house hunters should get ready to make the most of these falling rates.”

To discuss your mortgage with us and find the best rate for you, call 071 9194194 or email mortgages@obg.ie