If you’ve been watching mortgage rates in Ireland with cautious optimism, you’re right to pay attention. The average rate on new mortgages has fallen to 3.52% as of March 2026, down from 3.77% a year earlier (Central Bank of Ireland’s official interest rate statistics). This guide cuts through the noise to show what these drops mean for your next move — whether you’re fixing, switching, or still waiting.
Current average mortgage rate (March 2026): 3.52% ·
Lowest available rate: 3.0% fixed ·
ECB main rate (June 2025): 2.15% ·
Lenders that cut rates in 2024/2025: 5 major ·
Average rate drop year-on-year: 0.25 percentage points
Irish borrowers are now in the best position to negotiate since early 2023. But locking in a fixed rate too early could mean missing further drops if ECB cuts resume later in 2026.
Quick snapshot
- Average new mortgage rate: 3.52% (March 2026) – Central Bank of Ireland
- May 2025 rate was 3.66%, down from 4.17% a year prior – RTÉ News (national broadcaster) citing Central Bank data
- Lowest fixed rate available: 3.0% for green/ low‑LTV borrowers – Doddl.ie industry analysis
- Whether average rates will fall below 3% in 2026 – mixed broker forecasts (Switcher.ie consumer analysis)
- Speed and magnitude of further ECB cuts – Switcher.ie consumer analysis
- Impact of persistent housing demand on lender pricing (Switcher.ie consumer analysis)
- Nov 2024: Bank of Ireland cuts fixed rates by 0.50% – Bank of Ireland mortgage rates page
- Sep 2025: Bonkers reports further reductions (Bank of Ireland mortgage rates page)
- May 2026: Avant Money offers 3.0% fixed – MortgageLine market overview
- ECB held rates unchanged at March 2026 meeting – MortgageLine 2026 note
- Further gradual cuts possible if inflation stays low (MortgageLine 2026 note)
- Green mortgage deals likely to remain the sharpest pricing (MortgageLine 2026 note)
The key numbers tell one story: Irish mortgage rates are dropping, but the pace has slowed and the gap to the euro-area average has narrowed.
Here is how the latest rates stack up against recent history and what they mean for your borrowing costs.
| Fact | Value | Source |
|---|---|---|
| Average new mortgage rate (March 2026) | 3.52% | Central Bank of Ireland (official statistics) |
| Average new mortgage rate (May 2025) | 3.66% | RTÉ News via Central Bank |
| Average new mortgage rate (May 2024) | 4.17% | RTÉ News via Central Bank |
| Lowest fixed rate available | 3.00% | Doddl.ie (broker analysis) |
| Euro-area average (May 2025) | 3.32% | RTÉ News / ECB |
| ECB main refinancing rate (September 2024) | 2.15% | Switcher.ie (rate tracker) |
Will mortgage interest rates drop again?
What recent signals point to further rate cuts?
- The ECB delivered a sequence of cuts from September 2023, bringing its main rate from 4% down to around 2% by mid‑2025 (RTÉ News timeline).
- Bank of Ireland cut its fixed rates by 0.50% in November 2024 (Bank of Ireland mortgage page).
- By June 2025 the ECB deposit facility rate sat at 2.00%, where it remained through year‑end (Raisin Bank interest rate analysis).
ECB policy and its impact on Irish mortgage rates
Irish lenders typically follow ECB moves, but with a lag. Doddl.ie forecasts that while some lenders’ highest rates (around 6.4%) should fall, a “mass drop” across the whole market is unlikely even if the ECB continues cutting (Doddl.ie 2025 outlook). Based on 12‑month Euribor and typical lender margins, the broker projects Irish rates normalising around just over 3% in the near term rather than returning to sub‑2% levels (Doddl.ie lowest rate analysis).
For a first‑time buyer borrowing €250,000 over 30 years, a 0.25 percentage point drop saves about €35 per month. Not life‑changing, but enough to cover groceries or a utility bill.
Are Irish mortgage rates coming down?
Which lenders have reduced rates recently?
- Bank of Ireland, AIB, Avant Money, EBS, and other major lenders have announced reductions through 2024 and into 2025.
- A September 2025 comparison by Member First Credit Union showed Bank of Ireland’s three‑year fixed rate at 3.75% for certain bands, while AIB’s comparable rate was 4.30% (MFCU rate comparison).
How much have rates dropped compared to 2024?
The average new mortgage rate fell from 4.17% in May 2024 to 3.66% in May 2025 (RTÉ News). By March 2026 it touched 3.52% (Central Bank of Ireland). The median rate on outstanding principal dwelling home mortgages fell to 3.44% by December 2025, 51 basis points lower than a year earlier (Central Bank mortgage rate distributions).
What this means: The downward trend is real and broad‑based, but the pace of decline has slowed from 0.5 percentage points in 2024 to about 0.25 points annually more recently.
Should I fix for 2 or 5 years now?
Three dimensions, one decision: how much certainty you want versus how much flexibility you need.
Here is how the two most popular fixed terms compare on rate, flexibility, and risk.
| Dimension | 2‑year fixed | 5‑year fixed |
|---|---|---|
| Typical rate (mid‑2025 to early 2026) | 3.5% – 3.9% | 3.7% – 4.2% |
| Flexibility to benefit from further drops | High – you can re‑fix or switch after 2 years | Low – locked in for 5 years unless you break (with penalties) |
| Certainty over monthly payments | Medium (2‑year horizon) | High (long‑term budgeting) |
The pattern: A 2‑year fix is better suited for borrowers who think rates still have room to fall. A 5‑year fix suits those who value peace of mind over gambling on further cuts.
Upsides of 2‑year fix
- Lower typical rate now
- Opportunity to refix at a lower rate if ECB cuts continue
- Easier to switch lender without break penalties
Downsides of 2‑year fix
- Payments could rise when you refinance if rates reverse
- Shorter planning horizon
Upsides of 5‑year fix
- Payment certainty for 5 years
- Protection against future rate rises
Downsides of 5‑year fix
- Higher typical rate now
- Miss out on savings if rates drop further
- Costly to break early
Is 4.75% a good mortgage rate?
How does 4.75% compare to current market averages?
At 4.75%, you’d be paying well above the current average of 3.52% (Central Bank of Ireland). For a €100,000 loan over 20 years, a 4.15% variable rate costs about €613 per month (Bank of Ireland example), so 4.75% would push that to roughly €648 – an extra €35 each month.
Who might still be offered 4.75%?
Typically borrowers with a high loan‑to‑value ratio (e.g., 90%+), weaker credit history, or those borrowing from a non‑bank lender. According to Central Bank data, lending non‑banks had a median PDH mortgage rate of 3.65% in December 2025, while banks sat at 3.44% (Central Bank mortgage rate distributions). If you’re being quoted 4.75%, shopping around is essential.
The catch: Even a 1 percentage point difference on a €250,000 loan over 30 years costs roughly €2,700 extra per year. Using the official CCPC comparison tool can help identify cheaper options (CCPC mortgage comparison tool).
Will mortgage rates go down in 2026 in Ireland?
What do economists predict for 2026?
A 2026 broker note from MortgageLine states that the ECB kept euro‑area policy rates unchanged at its March 2026 meeting, suggesting a base case of stability rather than a fresh round of cuts (MortgageLine 2026 market overview). Doddl.ie projects that Irish mortgage rates are likely to normalise around just over 3% in the near term rather than return to sub‑2% levels (Doddl.ie forecast).
Factors that could keep rates elevated
- Persistent inflation in the euro zone could postpone further ECB cuts.
- Strong housing demand in Ireland may allow lenders to keep margins wider.
- Global economic uncertainty, including trade tensions, could delay rate normalisation.
Why this matters: For an Irish borrower, the window for locking in sub‑3.5% rates may be open for the next 6–12 months, but a return to the 2% fixed rates of a decade ago is not on the cards.
Timeline of major rate changes
- November 2024: Bank of Ireland cuts all fixed mortgage rates by 0.50% (Bank of Ireland)
- September 2025: Multiple lenders further reduce rates; Bonkers.ie reports broad market decline
- October 2025: EBS reduces fixed rates on 2–7 year terms
- May 2026: Avant Money publishes lowest headline rate of 3.0% (MortgageLine)
- Q4 2025 (forecast): Market expects additional ECB easing if inflation remains low
What’s certain and what’s not
Confirmed facts
- Irish mortgage rates have declined from 2024 highs (RTÉ News)
- Bank of Ireland and other lenders have implemented cuts
- Current average rate is around 3.52% (Central Bank of Ireland)
What’s unclear
- Whether rates will drop below 3% in 2026
- Speed and magnitude of future ECB cuts
- Impact of global inflation on Irish lending rates
What industry voices say
“We are reducing our fixed mortgage rates by 0.50% across all fixed-rate products, reflecting the changing interest rate environment.”
– Bank of Ireland press release, November 2024 (Bank of Ireland)
“I’m starting to see hope for further cuts in Q4. If the ECB keeps easing, the average could dip below 3.4% by year end.”
– Reddit user on r/irishpersonalfinance, 2025
“Irish mortgage rates are likely to normalise around just over 3% in the near term rather than return to sub‑2% levels.”
– Doddl.ie broker analysis (Doddl.ie)
For the typical Irish borrower, the choice is no longer whether rates are dropping — they are. The real question is timing. For first‑time buyers fixing now, a 2‑year deal offers flexibility to catch further drops. For those who prefer certainty, a 5‑year fix at today’s sub‑4% rates still beats the 4.5%+ highs of 2024. The window won’t stay open forever.
Frequently asked questions
Is 3.5% a good interest rate for a mortgage in Ireland?
Yes. 3.5% is below the current average of 3.52% (March 2026) and significantly below the 2024 peak. It’s a competitive rate, especially for a fixed term.
What is the current ECB interest rate and how does it affect mortgages?
The ECB main refinancing rate was 2.15% after June 2025 cuts, and the deposit facility rate stood at 2.00%. These rates influence Irish banks’ funding costs, which in turn affect mortgage rates (Switcher.ie).
How do I compare mortgage rates from different Irish lenders?
Use the official CCPC mortgage comparison tool (CCPC tool) to compare rates and fees across all lenders.
What is the difference between a fixed-rate and variable-rate mortgage?
A fixed rate locks your interest for a set period (e.g., 2 or 5 years). A variable rate can change at the lender’s discretion. Fixed rates offer certainty; variable rates offer flexibility but risk increases (AIB rate page).
When is the best time to lock in a mortgage rate?
If you believe rates will continue to drop, a short fix (2‑year) lets you refix later. If you want peace of mind, locking now at sub‑4% is historically reasonable.
How often do mortgage rates change in Ireland?
Lenders can change variable rates at any time. Fixed rates are updated periodically—often following ECB decisions or changes in market funding costs.
What is the lowest mortgage rate available in Ireland today?
As of early 2026, the lowest headline fixed rate is 3.0%, offered by Avant Money for green homes and low LTV borrowers (MortgageLine).