Mortgage interest rates at near three-year low

Average interest rate on new Irish mortgage agreements as of the end of November last year was 3.53%, down 0.03 percentage points compared to October — the lowest rate since February 2023

Rates remain the sixth highest in the eurozone, Central Bank of Ireland data shows. 

Average interest rates on new mortgages in Ireland dropped to their lowest level in nearly three years during November but remain the sixth highest across the eurozone, the latest data from the Central Bank of Ireland shows.

The weighted average interest rate on new Irish mortgage agreements as of the end of November last year was 3.53% down 0.03 percentage points compared to October and down 0.44 percentage points compared to November 2024.

This is the lowest rate since February 2023. The European Central Bank (ECB) started increasing interest rates in July 2022 in response to the inflation crisis driven by Russia’s invasion of Ukraine.

The ECB is due to meet again in the first week of February, but an interest rate cut is not expected.

Chairperson of Irish Mortgage Advisors Trevor Grant said while the “average cost of new mortgages has fallen, given the pause on ECB rate cuts, would-be house buyers and existing mortgage holders need to be mindful that there could be a limit to the extent to which the cost of Irish mortgages will continue to fall into the future”.

With all indications being that the ECB rate will be paused or increased in the coming months, this could be an opportune time for borrowers to fix their mortgage, if they have not yet done so.

While Ireland’s average mortgage interest rate has declined, it remained the sixth highest in the eurozone, with Latvia at number one with an average interest rate of 3.78% and Malta with the lowest at 1.96%.

Daragh Cassidy, of price comparison website Bonkers.ie, said although Irish rates remain sixth highest in Europe, the gap is now relatively modest at just 0.20 percentage points.

"Looking forward, the ECB appears done with cutting interest rates for now and indeed rates could remain on hold for all of 2026. So it’s unlikely mortgage rates will change much over the coming months,” he said.

“However Revolut is expected to enter the Irish mortgage market later this year so depending on how competitive its offering is, that could push rates down a bit.” 

The weighted average interest rate on new fixed rate mortgage agreements, which constitute 89% of the volume of new mortgage agreements, was 3.46% in November, while the average new variable rate stood at 4.08%.

The total volume of new pure mortgage agreements in November declined by €59m to €1.1bn. Renegotiated mortgages totalled €391m during the month.

In terms of consumer loans, the weighted average interest rate on new consumer loans increased by 0.22 percentage points to 7.59% in November 2025 compared to October. The total volume of new consumer loans was €226m.

The weighted average interest rate on household overnight deposits stood at 0.13%, unchanged since December 2024. The weighted average interest rate on new household deposits with agreed maturity decreased to 1.86%.

The volume of new household savings with agreed maturity reached €1.5bn in November and was the second-highest since January 2021, with the highest volume of €1.7bn recorded in October 2025.