Stephen Hamilton: Rate reductions and new competition provides opportunity for mortgage customers

A mortgage price war has erupted among the main Irish lenders such as Haven Mortgages, AIB, PTSB, Bank of Ireland, and Avant Money. 

Irish banks set their fixed and variable mortgage rates largely based on the savings and deposit rates they offer, rather than directly following ECB rates. Recent rate cuts are more a product of competition than ECB policy.

As a mortgage broker, I understand the importance of timing and information when it comes to securing the best mortgage rates. The Central Bank’s recent statistics confirmed that mortgage interest rates rose for the third consecutive month up to the end of March 2024 and many homeowners are now asking if it is the right time to lock into a new fixed mortgage rate.

Despite the recent uptick in rates, there is good news on the horizon. Since March, several mortgage lenders have reduced their mortgage interest rates. Mortgage rates have not returned to the lows of 2022 and perhaps never will in the medium term. However, mortgage rates on offer on the market have changed in recent months.