Best Mortgage Rates in Ireland - April 2024
Best mortgage rates in Ireland is essentially the lowest interest rate and/or APRC (annual percentage rate of change). However getting a mortgage to buy a home is one of the biggest purchase most people will ever make. The mortgage rate you choose can make thousands of euros worth of difference to your long-term costs. In this article you will find the best mortgage rates for first time buyers, home mover, switchers or remortgagers. In addition find out out what to look out for when comparing mortgages.
Irish Mortgage Rates
Interest rates determine the costs of borrowing to start or develop a business, or to buy a house or a car, or personal loans, loans to fund a health service or education system. It determine how much money that’s saved on deposit will earn. Interest rates can vary depending on the purpose of a loan, the time needed to repay the loan, and the risk that the loan represents to the lender, among other things.
The European central bank sets the key interest rates that banks pay when they borrow money from ECB or receive money from ECB. These interest rates impacts the Irish economy via banking system because the rate set by ECB influences the interest rate commercial banks in Ireland charge their customers including mortgages customers. The average Irish mortgage rates is now well above 4%, which is the highest level in about 10 years. This huge jump in rates in June 2023 caused a big squeeze on disposable income of mortgage holders. Getting the best mortgage rate can mean a lot of savings for your budget.
>> Read More: Check out interest rates on personal loans in Ireland and Check out interest rates on Credit Cards
We will be reviewing the below types of mortgage rates.
- Best First Time Buyer Mortgage in Ireland
- Best Fixed Rate Mortgage in Ireland
- Best Buy to Let Mortgage Deals in Ireland
- Best Green Mortgage Deals in Ireland
Best First Time Buyers Mortgage Deals in Ireland
A good step for someone looking to get on the property ladder is to speak to a mortgage adviser. First time buyers typically want to put down a lower deposit which means that they find a high loan to value attractive. As a first time buyer in Ireland, you might be eligible for help to buy schemes or first home scheme programs to help get on the property ladder. Most mortgage lenders in Ireland offer separate interest rates for first time buyers. As a first time buyer, a fixed rate mortgage is easier and more straightforward. In the table below we listed the best first time buyer fixed mortgage rate deals for LTV > 80% for a mortgage lower than €250,000.00 for 25 years.
Best 1-year fixed rate mortgage deals for first time buyers
Best 2-year fixed rate mortgage deals for first time buyers
Best 3-year fixed rate mortgage deals for first time buyers
Best 4-year fixed rate mortgage deals for first time buyers
Best 5-year fixed rate mortgage deals for first time buyers
Best 7-year fixed rate mortgage deals for first time buyers
Best 10-year fixed rate mortgage deals for first time buyers
Read more >> Best first time buyer mortgage deals in Ireland
Best Fixed Rate Mortgage Deals in Ireland
Existing homeowners who don’t plan on moving homes for a long time might want to consider fixed rate mortgages to avoid future unexpected rises in interest rates. Home movers, switchers and remortgagers, generally prefer fixed rate mortgages if they are people who like to set budget and need to know how much to set aside for a mortgage payment. In the tables below , we will show best mortgage rates for 2-year, 3-year, 4-year, 5-year, 7-year and 10-years. The rates are based on ≤60%, 61% – 80% and >80% for a mortgage of €250,000 over 25years.
Best 2-year fixed rate mortgage deals - Existing home owners
Best 3-year fixed rate mortgage deals - Existing home owner
Best 4-year fixed rate mortgage deals - Existing home owner
Best 5-year fixed rate mortgage deals - Existing home owner
Best 7-year fixed rate mortgage deals - Existing home owner
Best 10-year fixed rate mortgage deals - Existing home owner
Best Green Mortgage Deals in Ireland
Green mortgages are available to new and existing home loan customers looking to buy, build, structurally renovating or currently own a high energy rated home. Existing customers who own a home or looking to have a building energy rating of A1 to B3 (inclusive), and you have 5 years remaining on your mortgage term, you may be able to get a Green rate mortgage. The table below shows the best green mortgage rate on a mortgage of €250,000 over 25 years.
Best 4-year fixed rate mortgage deals
Best 5-year fixed rate mortgage deals
Best 7-year fixed rate mortgage deals
Best Buy to Let Mortgage Deals in Ireland
If you are thinking of investing in real estate and becoming a landlord, a buy to let mortgage is available for get on the property investment ladder. Landlords also need to consider buy to let interest rate and the cost of the mortgage and compare against potential rental income, to measure the profitability of the investment. The interest rate on buy to let are higher than interest rate for residential properties because of the risk involved if tenant don’t pay their rent. Also to consider is the minimum LTV for a buy to let are usually higher than the residential. properties. Below table shows the best buy to let rate for a mortgage.
Best 2-year fixed rate mortgage deals
Best 3-year fixed rate mortgage deals
Best 4-year fixed rate mortgage deals
Best 5-year fixed rate mortgage deals
How are mortgage rates determined in Ireland?
There are several factors that determine the mortgage interest rate that a bank charges for your home. Find below a list of some of these from the Central bank of Ireland
- Economic factors and monetary policies: Interest rates are a core part of the monetary policy and it determine the costs of borrowing to start or develop a business, or to buy a house or a car, or to fund a health service or education system. In detail these are the main issues that affect monetary policies and interest rates.
- The cost of funding: Banks’ funding can come from a range of sources such as customer deposits and wholesale markets and from central banks. The mix of this funding is influenced by regulatory requirements. For new lending, banks consider the cost of raising new funding, usually with some reference to interest rates in the market (and often reflecting their funding mix and the interest rates on deposits to customers).
- Credit risk: Banks must also take into account the riskiness of their lending when setting interest rates as they need to consider that some borrowers may find themselves unable to pay back their loan.
- Operating costs: The costs of developing, distributing and managing the loan and the customer relationship also needs to be captured as part of the bank’s assessment of the appropriate rate to charge on new lending. (In the first half of this year the underlying cost to income ratio of the three quoted Irish banks was 76% compared 65% for a range of EU and UK peers)
- Cost of capital: The amount of capital that banks fund themselves with varies from bank to bank and depends on factors such as a bank’s business model, how risky a bank’s assets are or have been and other considerations on risk profile.6 And of course equity funding costs as investors expect a return on their investment
Read More>> How mortgage rates are determined
Personal Factors that affect the cost of your mortgage?
- Purpose of the mortgage: is the house a PDH – primary dwelling residence or buy to let property? the purpose of the property determines the mortgage rate.
- Loan to value: The amount of deposit that you put down on the property will affect the mortgage rate applied to your loan.
- Credit history: Your personal credit history determines if the mortgage will be approved and the your credit profile will evaluate risk.
Read more>> How to manage your mortgage?
Types of mortgage interest rates
There are three types of mortgage interest rate:
- Fixed rate mortgage: This type of mortgage rate is fixed which means that the monthly mortgage payment you make is fixed and agreed for future point. It is simple and convenient for those who like a set budget.
- Variable rate mortgage: This type of interest rate moves at the discretion of the lender. In many cases, differentiated Variable rates are applied by the same lender at different levels of Loan toValue (LTV).
- Tracker mortgage: This type of interest rate moves mechanically in line with a reference rate such as the ECB’s Main Refinancing Operation rate. It tracks the ECB rates.
Read more>> Understanding the different type of mortgages
Find Mortgage Calculators of Top Mortgage Lenders
To better understand your affordability and readiness for a mortgage, a mortgage calculator will help you estimate how much you can borrow based on your deposit, interest rates and length of mortgage loan.
If you are already a home owner with a mortgage and looking to switch, remortgage or move homes or make overpayments, mortgage calculator can work out these payments for you. Here are some of the mortgage calculators, top Irish mortgage lenders have available.
PTSB Mortgage Calculator
EBS Mortgage Calculator
Mortgage Rates FAQ
Mortgage rates by length of loan
1-year fixed rate mortgage rates
2-year fixed rate mortgage rates
3-year fixed rate mortgage rates
4-year fixed rate mortgage rates
5-year fixed rate mortgage rates
7-year fixed mortgage rates
10-year fixed mortgage rates
15- year fixed mortgage rates
20-year fixed mortgage rates
25-year fixed mortgage rates
30-year fixed mortgage rates
Mortgage Arrears - What You Should Do?
If you are struggling to make your mortgage repayments or are in arrears. You need to first contact your mortgage lender to discuss what options that can be available to you. The Central Bank has a statutory Code of Conduct on Mortgage Arrears (CCMA) to help you if you are already or facing difficulty paying you mortgage. Regulated banks and mortgage lenders must follow these guidelines should your account fall into arrears. The code was set out to ensure that lenders work with you to get you back on top of your mortgage repayments.
Lynda Unogu MBA IMC (CFA UK) PMP
Lynda holds an MBA from University College Dublin and worked previously in product roles within financial services and technology firms like Mastercard, Citi Bank and JP Morgan. She constantly seeks to apply her expertise in financial services to the field of personal finance with the goal of helping people navigate the complexities of the finance.